Provides a state sales and use tax exemption for water for residential use that is not separately metered. (Item #23) (7/1/18) (OR DECREASE GF RV See Note)
Impact
The potential impact of SB 12 is significant, particularly in urban areas with a high concentration of multi-unit residential buildings. By broadening the sales tax exemption for water consumption in such residences, the bill addresses disparities that might exist in terms of tax burdens on residents. This could lead to a more equitable tax landscape for those living in apartment complexes compared to single-family homes, fostering a sense of fairness in municipal tax policy. Furthermore, the bill reinforces the notion that essential services like water should remain accessible without additional financial penalties.
Summary
Senate Bill 12, introduced by Senator Peacock, seeks to amend the state's sales and use tax laws concerning water sold for residential use. The bill specifically provides for an exemption from state sales and use tax for water that is utilized in residences where the water is not separately metered. This legislative change aims to alleviate financial burdens on residents of multi-unit dwellings, such as apartments, where individual units do not have separate water meters, thereby making it easier for residents to access affordable water without taxation hindrance.
Sentiment
Sentiment around SB 12 appears to be largely supportive, especially among those advocating for renters' rights and affordability in housing markets. Supporters of the bill argue that eliminating sales taxes on residential water usage will lighten the financial load on low-income families and individuals residing in multi-unit accommodations. However, as with many tax-related legislative changes, there may be concerns among budget-conscious lawmakers about the potential loss of state revenue that could arise from this exemption.
Contention
Points of contention surrounding SB 12 might include discussions on the viability of the state's budget and the implications of exempting additional categories of essential utilities from taxation. Critics could argue that while the bill aims to provide relief to residents, it could inadvertently lead to funding shortages for state and local services that rely on sales tax revenue. Additionally, clarifying definitions around what constitutes residential use and the enforcement of these exemptions also presents logistical challenges that would need to be addressed to ensure the bill's effective implementation and compliance.
Provides for the applicability of exemptions and exclusions for purposes of state sales and use taxes (Items #22 and #23) (OR +$173,000,000 GF RV See Note)
Constitutional amendment to remove the separate metering requirement from the definition of water sold directly to the consumer for residential use. (2/3 - CA13s1(A)) (OR DECREASE GF RV See Note)
Provides with respect to the effectiveness of certain exclusions and exemptions from state sales and use taxes (Items #7-34) (EN DECREASE GF RV See Note)