Bill > H2635

This bill establishes a sales tax holiday in 2016 for two days, August 20th and 21st, during which an excise tax, commonly known as sales tax, will not be imposed on most retail sales of tangible personal property, which refers to physical goods. However, this exemption does not apply to certain items, including telecommunications, tobacco products, gas, steam, electricity, motor vehicles, motorboats, meals, or any single item costing more than $2,500. Vendors are prohibited from collecting sales tax on eligible items during this period, and any tax erroneously collected must be returned to the department of revenue. Reporting requirements for vendors remain in effect, and the commissioner of revenue will certify the amount of sales tax forgone and any new revenue generated by the holiday to the comptroller, with a detailed report to legislative committees. The commissioner is also authorized to issue necessary instructions and regulations to implement this act, and the sales tax holiday only applies to transactions where possession is transferred or full payment is made on one of the designated days, excluding prior sales or layaway arrangements.