SB 1133

Senate Bill (SB) 1133 TPT; municipalities; customer refund claims  

Sponsor: Senator Lesko

Overview: SB 1133 allows a customer to make a direct claim for refund to DOR or a non-program city when they believe they paid tax to a vendor (taxpayer) on a transaction that could have been exempt if the buyer had presented an exemption certificate at the time of the sale.

League Position: OPPOSE - The League opposes this bill as it opens the door to a significant risk of fraudulent refund claims by customers of companies that have gone out of business and raises troubling theoretical issues, particularly related to the fundamental definition of who is a taxpayer.

Summary: SB 1133 allows a customer to make a direct claim for refund to DOR on a non-program city when they believe they paid tax to a vendor (taxpayer) on a transaction that could have been exempt if the buyer had presented an exemption certificate at the time of the sale. The bill provides the customer with the first option of requesting an assignment and waiver from the vendor. If the vendor fails or refuses to assign their rights to the refund, the customer can file a claim directly with DOR or a non-program city.

Updates

04/02/15: passed House 34-25; ready for Senate action on House amendments

03/26/15: House COW approved with floor amendments

03/25/15: retained on House COW calendar

03/23/15: from House rules okay.

03/16/15: from House ways and means do pass

03/10/15: referred to House ways and means

03/03/15: passed Senate 20-10; ready for House

02/24/15: from Senate rules okay

02/23/15: to Senate consent calendar

02/18/15: The bill passed Senate Finance by a 4-1 vote. The bill goes to the Rules Committee.