Bill > HB655

This bill establishes a local option sales tax that municipalities can adopt to reduce property taxes. The bill outlines the process for municipalities to implement the local sales tax, including setting the tax rate up to 1.5%. The revenue collected from the sales tax, less administrative costs, will be forwarded to the municipalities and used to calculate their property tax rates. The bill also gives the Commissioner of Revenue Administration authority to administer and enforce the sales tax, including adopting rules, collecting the tax, and requiring registration and record-keeping by vendors. The bill exempts certain items and transactions from the sales tax, such as prescription medicines, casual sales, and purchases by certain organizations.

Budget and Finance