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H 1050 - Omnibus Tax Law Changes

Tracking Level: Critical
Sponsor: Julia C. Howard (R)
Last Action: 5/29/2014 - Ch. SL 2014-3
House Committee: Fin
Senate Committee: Fin
Assigned To:
Seek AmendmentsNext Bill
Taxation & FinanceNext Bill

Staff Analysis of the Legislation

The most important part of this bill concerning municipalities is the reform to privilege license tax.  The House Finance Committee has advanced the bill and if passed this legislation would include a $100 per physical location cap on the local tax.  The potential cost to cities could be upwards of $25 million assuming that citites will increase taxes on businesses currently paying less than $100, and that cities will be able to locate and collect taxes from the businesses newly subjected to this tax.

Update 5/28/14

The Senate Finance Committee adopted the omnibus tax bill, but the Senate version will allow cities and towns to collect privilege license taxes on businesses for the year starting July 1 and repeal the authority altogether starting July 1, 2015.  Additionally, for the 2014-15 fiscal year the Senate version will only allow the collection of privilege license tax on businesses physically located in the city that intends to collect the tax and cities will not be allowed to charge businesses any more than they did in the 2013-14 fiscal year. 


Bill Summary from the State Site - Click for the State Summary Page / Click for Current Full Text