Requires the advanced collection of state sales and use tax (RE INCREASE GF RV See Note)
Impact
This legislation specifically targets state taxation methods and enhances the structure for how sales taxes are collected within the food and beverage sector, particularly relating to tobacco and alcohol. It explicitly prohibits local governing bodies from enforcing their own requirements for advance sales tax collections, which may alter the existing balance of power between state and local authorities in tax matters. This centralization of tax collection could simplify tax obligations for wholesalers but limit the authority of local governing bodies.
Summary
House Bill 63, introduced by Representative Lance Harris, mandates the advanced collection of state sales and use tax from wholesalers of tobacco and alcoholic beverage products. The bill requires these wholesalers to collect an advance sales tax amount equal to that which would be applicable on the retail sale of the item. Additionally, it allows wholesalers to deduct a small percentage as compensation for their collection efforts, thereby facilitating tax compliance among retailers and streamlining the overall sales tax collection process.
Sentiment
The sentiment surrounding HB 63 appears to be mixed, with proponents advocating for its potential to improve the efficiency of tax collections and reduce the administrative burden on both wholesalers and retailers. However, opponents might express concerns regarding local control over taxation and whether it undermines local governmental flexibility to address specific community needs. This polarization reflects broader debates about centralized versus localized governance models in tax policy.
Contention
Notable points of contention regarding HB 63 include its impact on the autonomy of local governments, which may feel constrained by the state legislation to impose necessary tax measures based on local circumstances. Discussions may also revolve around the implications of placing an advanced tax burden on wholesalers and how this could affect pricing and availability of tobacco and alcoholic products in local markets. The bill's effective date has been set for October 1, 2017, signaling the urgency of establishing these regulations.
Requires collection of advance payment of the state sales and use tax by certain tobacco and alcoholic beverage wholesalers (OR SEE FISC NOTE GF RV See Note)
To provide for the payment of a vendor's compensation for the state sales and use tax collection and to dedicate certain state sales tax revenues (EN +$4,300,000 GF RV See Note)