HB 1197 Summary

• Creates a "Streamlined Sales and Use Tax Agreement Fund" to receive the first $100 million in annual revenue from the state sales tax, with remaining revenues deposited to general revenue; funds designated for capital improvements and debt repayment.

• Directs the Department of Revenue to implement the Streamlined Sales and Use Tax Agreement and authorizes rulemaking authority subject to chapter 536 review provisions.

• Changes effective dates for local sales taxes from "first day of first calendar quarter" to "first day of second calendar quarter after director receives notification" for streamlined compliance.

• Adds new definitions and provisions related to bundled transactions, telecommunications services, and product-based exemptions aligned with the Streamlined Sales and Use Tax Agreement framework.

• Establishes CSP (Certified Service Provider) and CAS (Certified Automated System) provisions to relieve sellers from liability when relying on state-certified product classification systems.