House Bill (HB) 2389: S/E: transaction privilege tax changes
Sponsor: Representative Lesko
Overview: The strike-everything amendment to HB 2389 makes a number of changes to the transaction privilege tax statutes to address the implementation of last year's HB 2111.
League Position: NEUTRAL - The League is supportive of many of the provisions of this legislation, but cannot support the provisions that undermine the uniformity goal established by HB 2111 by segregating residential rental collection from the rest of the TPT categories.
Summary: HB 2389 synchronizes municipal licensing requirements with state licensing by requiring annual renewals for both state and municipal licenses. However, state renewals will not be subject to a fee while each municipality will be able to set their own renewal fees up to $50. Multijurisdictional businesses will be required to receive a license in each jurisdiction that it does business. The bill requires a taxpayer who operates a business in more than one location to file electronically and allows for electronic signatures on all tax documents. The bill also requires non-program cities to administer and collect municipal TPT associated with residential rental. The bill changes the contractor exemption provision from a deduction to an exemption and removes addition and subtraction from definition of modification.
02/17/14: HB 2389 passed the House Ways and Means Committee with the strike-everything amendment on a 5-0-0-3 vote. The League signed in neutral and testified on the bill. The bill now proceeds to the Rules Committee.
03/06/14: HB 2389 has been retained on House Committee of the Whole calendar.
03/10/14: HB 2389 passed out of the House Committee of the Whole with the amendment offered by Representative Lesko and the floor amendment also offered by Representative Lesko. The bill now proceeds to the Senate.
03/20/14: An amended HB 2389 passed out of the Senate Finance Committee on a 6-0 vote. The bill now proceeds to the Rules Committee.
04/03/14: HB 2389 passed out of the Senate Rules Committee. The bill now proceeds to Senate Third Read Committee of the Whole.
04/15/14: HB 2389 passed out of the Senate Committee of the Whole with the Finance Committee amendment and the floor amendment offered by Senator Yarbrough, which address League concerns regarding the Municipal Tax Hearing Office.
04/16/14: HB 2389 passes Senate third Read 29-0.
04/22/14: The bill is amended in conference committee to address an issue related to the Supplemental Nutrition and Assistance Program.
04/23/14: HB 2389 passes the House 53-0 and the Senate 26-0 on Final Read. The bill now awaits further action from the Governor.