HB 2245 Summary

• Repeals the sales tax exemption for warranty and service contracts (previously listed in section 42-5061, subsection A, paragraph 3), making the storage, use or consumption of tangible personal property provided under such contracts subject to use tax instead.

• Repeals the sales tax exemption for stocks and bonds (previously listed in section 42-5061, subsection A, paragraph 7).

• Adds a new sales tax exemption for coal sales (section 42-5061, subsection A, paragraph 59) and modifies the mining classification definition to exclude coal from taxation as a nonmetalliferous mineral product.

• Increases the corporate income tax rate from 4.9 percent to 5.5 percent for taxable years beginning after December 31, 2021 (section 43-1111).

• Renumbers numerous paragraphs throughout section 42-5061 and related sections to accommodate the removal of the two repealed exemptions, affecting references to deductions and exemptions for medical equipment, food, vehicles, propagative materials, and other tangible personal property.