HB 1270 Summary

• Temporarily suspends general excise and use tax exemptions for nine categories of income and proceeds (cargo loading/unloading, tugboat services, aircraft rent, shipbuilding, enterprise zone businesses, and others) from July 1, 2021 through June 30, 2025, and imposes a 4% tax rate on these previously exempt amounts.

• Exempts from the new 4% tax any gross income from binding written contracts entered into before July 1, 2021 that do not permit passing on increased tax rates, stevedoring services provided by wholly owned subsidiaries, and amounts that cannot legally be taxed under the U.S. Constitution or federal law.

• Eliminates the concept of "fair market rental value" for transient accommodations tax on resort time share vacation units and replaces it with taxation based on actual gross rental or gross rental proceeds, effective July 1, 2021.

• Requires the Department of Taxation to report information on all exemptions and exclusions from the general excise tax beginning July 1, 2021, with limited exceptions.

• Grants the Department of Taxation authority to postpone payment of imposed taxes until the annual tax return deadline and to adopt rules implementing the new tax provisions.