HB 3006 Summary

• Establishes a 2% state sales and use tax on tangible personal property, leases, and services, effective July 1, 2022, with the Department of Revenue responsible for collection and administration.

• Transfers collection of municipal general sales and use taxes from local governments to the state by July 1, 2022, while municipalities retain the ability to levy specific excise taxes on individual product categories like bed taxes and liquor taxes.

• Authorizes the Department of Revenue to enter into the Streamlined Sales and Use Tax Agreement to coordinate with other states on sales tax administration standards and simplification.

• Provides extensive exemptions from sales and use tax including food for off-premises consumption, health care services, child care, feminine hygiene products, and property used by the state or federal government.

• Requires vehicle owners to pay state sales and use tax as a condition of vehicle registration, establishes seller permit requirements, and imposes penalties for misuse of resale exemption certificates.