HB 223 Summary

• Imposes a 6% tax on rental or license fees for commercial real property use, with specified exemptions for agricultural property, dwelling units, airports, ports, utilities, and qualified motion picture production activities.

• Establishes a phased exemption on the first portion of annual rental fees, starting at $10,000 (January 1, 2018) and increasing by $10,000 annually through $90,000 (January 1, 2026).

• Repeals the commercial real property rental tax entirely effective January 1, 2027, by which time the exemption threshold reaches $90,000.

• Exempts qualified production companies for motion picture, television, and digital media production services upon presentation of a certificate of exemption issued by the Department of Revenue.

• Conforms related provisions in statutes governing air carriers, education facilities, turnpike concessions, and high-speed rail to align with changes to the commercial real property tax.