HB 2871 Summary

• Establishes a Department of Revenue tax system modernization project advisory committee to oversee an integrated tax system upgrade, funded through fees assessed to counties, cities, towns, and regional transportation authorities from June 30, 2022 through June 30, 2028.

• Modifies aircraft license tax calculations to limit annual fair market value increases to no more than the annual percentage change in the consumer price index, with 2019 as the benchmark year.

• Adds exemptions from transaction privilege tax for sales of coal and containment structures used in pollution control and environmental remediation activities.

• Expands agricultural machinery and equipment tax exemptions to include off-highway vehicles modified to function as tractors, effective on or after the first day of the month following the general effective date.

• Appropriates specified amounts for fiscal year 2022-2023 to border security ($209.2 million), state highways ($925.4 million), state aviation ($20.6 million), budget stabilization ($425 million), and state parks ($38.2 million) funds from transaction privilege tax revenues not designated as distribution base.