House Bill 498 Summary

• Changes distribution of sales tax collected by marketplace facilitators and out-of-state retailers from going entirely to the tax relief fund to following the standard sales tax distribution formula beginning July 1, 2024.

• Maintains current distribution to the tax relief fund through June 30, 2024, then transitions to using the general sales tax distribution formula with remainder going to tax relief fund instead of the general fund after July 1, 2024.

• Requires marketplace facilitators to obtain separate seller's permits for collecting and remitting state sales and use taxes on transactions facilitated for third-party sellers.

• Establishes ongoing transfers of $110,000,000 annually from the tax relief fund to the general fund beginning in fiscal year 2022.

• Declares an emergency, making the act effective immediately upon passage and approval.