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IN HB1316
Bill
Status
3/6/2018
Primary Sponsor
Timothy Brown
Click for details
AI Summary
HB 1316 Summary
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Defines retail merchants making retail transactions to include those who grant end users rights to use prewritten computer software delivered electronically or remotely access prewritten computer software over the Internet, private/public networks, or wireless media.
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Exempts transactions where the end user is a business using the prewritten computer software to carry out core functions of its business from retail transaction classification.
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Sets sales and use tax rate at 3% for taxable remote access transactions of prewritten computer software, effective July 1, 2018.
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Requires the Department to separately account for revenue from remote access software transactions and report annually to the state budget committee by September 1.
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Triggers automatic one-time tax rate reduction to 6.75% beginning January 1 of the following year if remote access software revenue exceeds $250,000,000 in a state fiscal year.
Legislative Description
Sales taxes and tax credits. Provides that for purposes of the sales tax, a person is a retail merchant making a retail transaction when the person sells, rents, leases, or licenses for consideration the right to use prewritten computer software delivered electronically. Specifies, however, that a transaction in which a user purchases, rents, leases, or licenses the right to remotely access prewritten computer software: (1) is not considered to be a transaction in which prewritten computer software is delivered electronically; and (2) does not constitute a retail transaction (and is therefore not subject to sales tax). Provides a sales tax
Last Action
Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 425: yeas 37, nays 8
3/14/2018