HB97 Summary

• Department of Revenue must suspend collection of taxes or fees by administrative rule when administrative costs exceed the total amount collected for each of the previous three fiscal years.

• Department must notify affected localities prior to filing notice if suspension would result in reduced local revenues.

• Four exceptions prevent suspension: federally mandated taxes/fees, suspension would reduce federal funding exceeding collection costs, suspension would reduce state and local revenues exceeding collection costs, or suspension would negatively affect public health, safety, or welfare.

• Suspension rules cannot be applied retroactively and must be reviewed at least every five years; rules must be repealed if administrative costs no longer exceed collected amounts, with no taxes or fees due for periods the rule was in effect.

• Act becomes effective on the first day of the third month following passage and approval by the Governor.