HB 2657 Summary

• Renames the "prime contracting" business classification to "manufactured building dealer" classification and modifies the tax base calculation and deductions available to contractors.

• Adds new sourcing rules for retail sales of tangible personal property (section 42-5039) based on where orders are received and where property is located or delivered.

• Allows counties and districts to levy use taxes on storage, use or consumption of tangible personal property at rates equal to their existing excise tax rates if approved by voters.

• Modifies contractor liability rules so tangible personal property sold to contractors is subject to retail sales tax unless the property owner certifies it will be used for tax-exempt purposes, shifting some tax burden from contractors to retailers.

• Includes transition provisions protecting contracts entered into before January 1, 2015 from tax changes, allowing them to be taxed under the prior law rates and deductions.