Bill > SB621

This bill eliminates "hold harmless" reductions in distributions of gross receipts taxes to municipalities and counties, which were previously used to offset certain tax deductions, specifically those related to food and healthcare practitioner services. The bill amends existing laws to change how these distributions are calculated, moving from a system that phased out these payments over time to one that calculates a "maximum distribution" based on specific tax rates and deductions, and then subtracts any revenue from a municipal or county "hold harmless gross receipts tax" that has been transferred to them. Importantly, these distributions will now be capped at a minimum of zero, and the bill also clarifies definitions and allows for adjustments related to tax increment development districts. The changes are set to take effect on July 1, 2015.