H.B. 1270 Summary

• Temporarily suspends general excise and use tax exemptions for nine categories of business activities (cargo loading/unloading, tugboat services, aircraft rental, shipbuilding, enterprise zone businesses, and others) from July 1, 2022 through June 30, 2026.

• Imposes a 4% tax rate on previously exempt gross income and gross proceeds during the suspension period, with no county surcharge applicable.

• Exempts income from binding written contracts entered before July 1, 2021 that cannot pass on tax increases, stevedoring services between parent and subsidiary companies, and income that cannot be legally taxed under federal law.

• Changes transient accommodations tax calculation for resort time share vacation units from "fair market rental value" to "gross rental or gross rental proceeds" basis at rates of 7.25%, 8.25%, and 9.25%.

• Requires information reporting beginning July 1, 2021 on all exclusions or exemptions from general excise tax, with exceptions for certain statutory exemptions and items determined by the director of taxation.