Committee: Ways and Means General FundSponsor: Scott
Analyst: Julie KnightDate: 04/17/2019

FISCAL NOTE

House Bill 418 as amended and reported by the Committee on Ways and Means General Fund removes the affiliated nexus for simplified sellers use tax (SSUT) and provides for a one-time local rate adjustment not to exceed one percent above the 8% SSUT rate to be collected on all eligible SSUT sales. The local rate adjustment is the difference between the combined state, average municipal and average county rates in effect as of January 1, 2019 and the 8% SSUT rate and shall be effective on sales made on or after October 1, 2020.

This bill will increase tax receipts to counties and municipalities depending on the amount of local rate adjustments assessed and collected on SSUT sales. However, based on current collections, a local rate adjustment of one percent would increase SSUT collections to counties and municipalities by an estimated $19.7 million

Further, this bill specifies that effective with taxes collected beginning January 1, 2020, 25% of the SSUT proceeds allocated to county general funds be distributed by the county to the local boards of education within the county. Based on Fiscal Year 2019 year-to-date collections, the total allocation to local boards of education would be an estimated minimum $7.35 million for FY 2021 and an estimated minimum of $9.8 million each fiscal year thereafter..


 Steve Clouse, Chair
Ways and Means General Fund