HB 20B-1004 Summary

• Allows qualifying retailers in alcoholic beverages drinking places, restaurants and eating places, and mobile food services industries to deduct up to $70,000 per location from state net taxable sales and retain the resulting sales tax collected for November 2020 through February 2021.

• Qualifying retailers must timely file sales tax returns, operate at fixed physical premises or mobile units (limited to five locations per category), and may not retain local city, county, or special district sales taxes.

• Exempts qualifying retailers retaining sales tax under this provision from normal excess tax remittance requirements, penalties for tax evasion, and criminal penalties related to tax collection.

• Authorizes the Department of Revenue to share pertinent information with the Department of Public Health and Environment to determine amounts of state sales tax retained by qualifying retailers.

• The temporary deduction and retention provisions automatically expire on December 31, 2026, with all related exemptions and penalties reverting to standard law.