Bill Summary

by Finance & Tax Subcommittee, Workman

Tax On Sales, Use, & Other Transactions: Revises term "mail order sale" to specifically include sales of tangible personal property ordered through Internet or from dealer in foreign country; provides that certain persons who make mail order sales & who have nexus with this state are subject to this state's power to levy & collect sales & use tax when they engage in certain enumerated activities; specifies that certain dealers are not required to collect & remit sales & use tax unless certain circumstances exist; creates rebuttable presumption that dealer is subject to state's power to levy & collect sales or use tax; specifies evidentiary proof that may be submitted to rebut presumption; revises definition of term "dealer"; creates annual sales tax holiday; provides for determining length of such sales tax holiday; provides for permanent reductions in state tax rates imposed on sales, use, & other transactions under specified circumstances; requires that DOR develop tracking system, in consultation with Revenue Estimating Conference, to determine amount of sales tax remitted by out-of-state dealers who would otherwise not be required to collect & remit sales taxes but for amendments made by act; requires DOR to submit annual report to Governor & Legislature. Effective Date: February 1, 2014

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