SB 1413

SB 1413: taxes; manufacturers' electricity sales; exemption 

Sponsor: Senator Yarbrough

Overview: Senate engrossed SB 1413 exempts electricity used for manufacturing and smelting from state sales tax.

League Position: NEUTRAL - The League has dropped its opposition to the bill with the floor amendment that was offered by Senator Steve Yarbrough. The amended version of SB 1413 no longer preempts cities and towns, but still ensures that should a city or town choose to provide such an exemption, there will be uniformity at the state and local levels.

Summary: As amended, SB 1413 exempts electricity used in manufacturing and smelting operations from state transaction privilege taxes (TPT). Any cities and towns that wishes to similarly exempt manufacturers at the local level must use the same definitions and must provide the exemption to all manufacturers. Terms used in the measure such as "Manufacturing" and "smelting" are more refined to reflect standards currently in use by the Department of Revenue.

Updates

02/12/14: SB 1413 passed out of the Senate Finance Committee on a 7-0 vote. The League signed in and testified in opposition to the bill. The bill now proceeds to the Senate Rules Committee.

03/03/14: SB 1413 passed out of the Senate Rules Committee.

03/06/14: SB 1413 passed out of the Senate Committee of the Whole (COW) with an amendment that narrows the application of the tax exemption as well as eliminates the preemption on local utility tax policies. With the amendment, the League dropped its opposition to the bill. Following COW, the bill passed out of the Senate on a 25-0 vote. The bill now proceeds to the House for committee assignment.

03/18/14: An amended SB 1413 passed out of the House Ways and Means Committee on a 7-0 vote. The bill now proceeds to the Rules Committee.

04/03/14: SB 1413 passed out of the House Committee of the Whole with the floor amendment offered by Representative Lesko. The bill now proceeds to House Third Read.

04/08/14: SB 1413 passed House Third Read on a vote of 51 ayes and 3 nays. The bill is ready for Senate action on House amendments. The bill also passed Senate Final Read on a vote of 27 ayes and 0 nays. The bill now proceeds to the Governor.

04/11/14: SB 1413 has been signed by the Governor.