HB 995 Summary

• Increases state sales tax by 2.5 cents effective January 1, 2012, to replace revenue from the required local effort school property tax beginning November 2012

• Eliminates the requirement that school districts levy the minimum millage rate for required local effort, as this funding will come from the state-controlled sales tax proceeds instead

• Reserves 29 percent of all sales tax proceeds in the General Revenue Fund specifically for school district funding to replace property tax revenue on a dollar-for-dollar basis

• Increases various transient rental, admissions, and use tax rates from 6 percent to 8.5 percent, and electrical power tax from 7 percent to 9.5 percent to support the education funding shift

• Modifies sales tax brackets and collection procedures to accommodate the 2.5 cent increase, with detailed calculations for transactions under and over $1