Bill > SB558

This bill provides for a general statewide sales tax to replace school property taxes. Specifically, the bill establishes a 4% sales tax on the gross receipts of sales of tangible personal property, services, and electronically transferred products, with the revenue being deposited into a school equalization and property tax reduction account. The bill comprehensively defines taxable sales, provides exemptions for certain goods and services, and outlines rules for tax collection, reporting, and enforcement. The sales tax is designed to generate revenue that will be used to reduce or eliminate school property taxes, with county commissioners required to request funding from the school equalization account to reduce or eliminate various school-related property tax levies. Key provisions include detailed definitions of taxable items and services, registration requirements for retailers, collection and remittance procedures, and specific exemptions for items like agricultural equipment, medical devices, and certain nonprofit activities. The bill also includes provisions for out-of-state retailers and marketplace providers to collect sales tax, and establishes a framework for implementing the Streamlined Sales and Use Tax Agreement. The sales tax is set to take effect on January 1, 2026, with the goal of providing a more stable and equitable funding mechanism for school districts by reducing reliance on property tax levies.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3297