HB 5601 Summary - Taxation

• Revises the definition of "prepaid calling arrangement" and updates sales tax provisions related to prepaid calling services, telecommunications equipment, and electrical power/energy.

• Increases electrical power and energy tax from 4.35% to 7% and implements a 2.6% additional tax on electricity charges; allows combined collection at 6.95% if properly reported.

• Extends community contribution tax credit expiration dates from June 30, 2015 to June 30, 2016 under multiple programs and reduces annual tax credit caps from $18.4 million to $10.5 million for homeownership projects.

• Exempts therapeutic veterinary diets (obtainable only from licensed veterinarians), child restraint systems, booster seats, youth bicycle helmets, and establishes sales tax holidays for Energy Star/WaterSense products (September 19-21, 2014) and hurricane preparedness items (May 31-June 8, 2014).

• Adds provisions allowing dealers to claim credits/refunds for taxes paid on worthless private-label credit card accounts with a 64.4% recovery cap and requires insurers to pay 1.75% tax on direct written bail bond premiums.