Bill > S0116

This bill reduces the state tax levied on rental or license fees charged for the use of real property from 6 percent to 5 percent. This applies to payments for the privilege of using or occupying real property, including base rent, percentage rents, or similar charges, and also applies when such fees are paid in the form of property, goods, or services. The bill clarifies that if a contract includes both taxable and non-taxable payments related to real property use, the tax will be based on a reasonable allocation of those payments, and will not apply to the non-taxable portion. This change is set to take effect on January 1, 2017.