An Act Regarding the Sales Tax

CONCEPT DRAFT SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

This bill proposes to amend the sales tax laws in the following ways:

1. All statutory exemptions from the sales tax would be repealed;

2. The general sales tax rate would be lowered from 5% to 3%;

3. Each business or person collecting sales tax would be entitled to retain 1/2 cent of the 3 cents per dollar imposed;

4. A mechanism would be established to increase or decrease the sales tax rate based on projected revenue shortfalls or surpluses; and

5. All revenue generated by this bill above current sales tax revenue would be used to decrease property tax rates through such methods as increasing education funding and raising the homestead property tax exemption amount.