HB 5010 Summary

• Corporate and Bank Tax Changes: Extends and increases additional taxes on corporations and banks, with a 10% surcharge applying to income years commencing on or after January 1, 2018, and modifies the corporate net income tax rate schedule, extending various mill rates through 2026.

• Health Care Provider Taxes: Establishes a new 6% tax on ambulatory surgical center net revenue (effective July 1, 2020) and maintains existing taxes on hospitals and other health care providers, with exemptions for Medicaid and Medicare payments.

• Electronic Cigarette Tax Increase: Raises the tax on electronic cigarette products from 10% wholesale price to 50% effective October 1, 2020.

• Credit Card Processing Fees: Authorizes state agencies and various courts to charge service fees for credit card payments, with fees capped at actual credit card processor charges.

• Higher Education and Bonding Provisions: Increases the Budget Reserve Fund threshold from 10% to 15% for higher education grant eligibility, authorizes credit revenue bonds backed by withholding taxes, and adjusts various fiscal appropriations and transfers.