HB 2416 Summary

• Repeals sales tax exemption for warranty and service contracts, making the storage, use, or consumption of tangible personal property under such contracts subject to use tax under section 42-5156.

• Removes sales tax exemption for the sale of stocks and bonds.

• Eliminates the sales tax exemption for coal, making coal sales subject to retail classification tax; exempts coal from the mining classification and establishes a county excise tax of 0.5 percent on coal mining instead.

• Increases the corporate income tax rate from 4.9 percent to 5.5 percent for taxable years beginning after December 31, 2019.

• Renumbers numerous tax exemption paragraphs in section 42-5061 to account for the removal of the warranty/service contracts and stocks/bonds exemptions.