SB 1083 Sales tax increase; exempts motor vehicles & boats.
Charles J. Colgan | all patrons    ...    notes
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Summary as introduced:
Sales and use tax increase; exemption of certain motor vehicles and boats from tangible personal property taxation. Provides for a one and one-half percent increase in the retail sales and use tax and exempts certain motor vehicles and boats from local tangible personal property taxation, provided that a constitutional amendment exempting such motor vehicles and boats is ratified by a majority of voters voting on such measure in November 2002. The tax exemptions and the additional one and one-half percent sales and use tax are effective January 1, 2003.The revenue from the increase in the sales and use tax shall be used to make payments to localities in lieu of the current funding processes in place to reimburse localities under the Personal Property Tax Relief Act of 1998. The new funding mechanism will begin in calendar year 2003. In general, the amount funded to (i) a county shall be the amount funded to the county in the preceding calendar year plus 15 percent of any increase in the state sales and use tax revenue over the preceding fiscal year; (ii) a city shall be the amount funded to the city in the preceding calendar year plus 11 percent of any increase in the state sales and use tax revenue over the preceding fiscal year; and (iii) a town shall be the amount funded to the town in the preceding calendar year plus five percent of any increase in the state sales and use tax revenue over the preceding fiscal year. Each locality will have a base year funding amount. The base year funding amount shall equal (i) for a county, 15 percent of its total local tax revenues collected in fiscal year 1997; (ii) for a city, 11 percent of its total local tax revenues collected in fiscal year 1997; and (iii) for a town, five percent of its total local tax revenues collected in fiscal year 1997. The base year amount is used for purposes of determining initial funding amounts to counties, cities, and towns in calendar year 2003.

Full text:
01/10/01  Senate: Presented & ordered printed, prefiled 01/10/01 013198412  pdf | impact statement

Status:
01/10/01  Senate: Presented & ordered printed, prefiled 01/10/01 013198412
01/10/01  Senate: Referred to Committee on Finance
02/01/01  Senate: Left in Finance