House Bill 2515 Summary

• Repeals sections 42-5075 and 42-5076 (prime contracting and owner builder sales classifications) effective January 1, 2011, eliminating separate tax classifications for construction contractors.

• Renumbers and consolidates tax code provisions related to retail sales, deductions, and exemptions following the repeal of contractor classifications.

• Preserves tax obligations for contracts entered into before January 1, 2011 by prime contractors at a rate of 5.6 percent under prior law.

• Adds exemptions and deductions for tangible personal property incorporated into structures under pre-existing contractor agreements and environmental remediation activities.

• Amends motor vehicle nonresident registration provisions, forest health enterprise incentives, military reuse zone tax credits, and various transaction privilege and use tax definitions to reflect the elimination of contractor tax classifications.