Standard industrial classification codes for linen supply and industrial launderers and modifying the manufacturing and agriculture tax credit. (FE)
Impact
Once enacted, SB845 will have implications for property tax assessments and exemptions, particularly for businesses involved in the laundering and supply of industrial linen. Starting January 1, 2024, the new SIC codes for linen supply and industrial launders will allow these businesses to benefit from property tax exemptions under the newly defined categories. This could lead to increased economic support for these sectors by financially incentivizing their operations at the state level.
Summary
Senate Bill 845 aims to update the Standard Industrial Classification (SIC) codes applicable to linen supply and industrial launderers, thereby facilitating the assessment of properties in these industries as manufacturing properties. The bill also seeks to modify the definition of 'qualified production property' to include items that are laundered or dry cleaned and subsequently sold, leased, or rented to industrial, commercial, or government entities. This inclusion broadens the scope of what qualifies for certain state tax credits, particularly in the manufacturing and agriculture sectors.
Contention
Debate over SB845 may arise regarding the effectiveness of such tax credits in stimulating economic growth versus concerns about potential revenue losses for the state. Critics might argue that broadening the tax incentives for specific sectors could lead to disproportionate benefits compared to other industries that do not receive similar treatment. Additionally, questions regarding the administrative feasibility of implementing and monitoring these new classifications may also surface during legislative discussions.