A mechanism clearing up confusion in statute related sales tax and remote sellers revenue reached the House recently.
Senators passed Senate Bill 86, which adjusts the Partridge Amendment and permits review of remote seller tax revenue before lowering sales tax, on a 28-6 vote. Senate Taxation passed the bill out of committee previously on a 4-2 vote.
The Partridge Amendment, which was introduced and adopted as part of 2016’s House Bill 1182, called for the reduction of the sales tax by one-tenth of percent for every $20 million raised by remote sellers tax – the tax collected by the state on Internet sales.
There is no mechanism in law, however, to compel this reduction, which highlights the necessity of SB 86.
SB 86 requires the Department of Revenue to present actual revenue collected from the remote sellers tax to the Joint Appropriations committee and should the revenue collected from the remote sellers tax exceed the previous calendar year’s revenue collection from the same tax by $20 million, the committee may introduce a bill to reduce the sales tax by one-tenth of a percent.
“(The bill) charges the appropriations committee with determining the final (remote sellers tax) revenue,” Sen. Partridge said. “It allows for us as the legislature to go forward being in control.”