Senate Bill 1738 Summary

• Establishes Department of Revenue integrated tax system modernization project fund, authorizing fees from counties, cities, towns, and regional transportation authorities from June 30, 2022 through June 30, 2028, with amounts transferred from transaction privilege tax and gas tax revenues.

• Modifies aircraft license tax to cap annual fair market value increases at the consumer price index rate, benchmarked to 2019 values beginning fiscal year 2021-2022.

• Adds sales tax exemption for coal and creates exemption for containment structures used in pollution control, applying retroactively to taxable periods beginning December 31, 2015.

• Allocates $1.618 billion in fiscal year 2022-2023 from non-distribution base transaction privilege tax revenues to border security, state highway, aviation, parks, and budget stabilization funds.

• Establishes advisory committee for tax system modernization and creates individual income tax model maintained by Department of Revenue for fiscal impact analysis with staff access upon project completion.