House Bill 1023

Committee Chair: Larry O’Neal

Committee:Ways & Means

House Sponsor: Steve Tumlin

Chairman O’Neal’s opinion of the legislation:

HB 1023 extends the sales tax exemption for sales to or use by a government contractor of overhead materials in performance of a contract with the United States Department of Defense or the National Aeronautics and Space Administration for the purpose of national defense.  “Overhead materials” is defined such that the cost of which is charged to an expense account and allocated to various US government contracts in accordance with Generally Accepted Accounting Principles and government contract accounting standards.  Currently, this exemption is set to be repealed on January 1, 2009, and this bill extends this repeal date to January 1, 2011. 

This bill comes to the House Floor under the Structured Rule.