HB2781 Summary

• Establishes a successor surcharge on general excise and use taxes effective January 1, 2031, replacing the county surcharge on state tax that is scheduled to expire December 31, 2030.

• Sets surcharge rate at one-half percent (0.5%) of all gross proceeds, gross income, and property values taxable under the general excise and use tax chapters.

• Directs surcharge revenues to fund statewide universal preschool, supplemental K-12 education funding, and social services provision.

• Applies surcharge to all transactions except those taxed at the one-half percent rate, 0.15 percent rate, or exempt transactions under existing law.

• Requires taxpayers to designate taxation districts and file schedules with tax returns designating surcharge amounts by district; imposes 10% penalty for failure to properly report or file required schedules.