HB 1142 Summary

• Excludes the cost of unimproved land and costs of sale of improved property from the contractor's tax calculation, and removes the previous exemption for residential construction from the tax.

• Requires 18.5% of state sales tax revenue from the contractor's tax on residential dwelling construction, remodeling, and renovation to be deposited into a special fund and distributed annually to municipalities based on their proportion of building material sales.

• Makes contractor tax payment due within 60 days after certificate of occupancy for new residential dwellings, or within 60 days after final payment for remodeling/renovation work.

• Requires counties and municipalities that have adopted construction codes with permitting requirements to display the prime contractor's material purchase certificate number on all permits and require submission of the certificate before permit issuance.

• Eliminates the bond or prepayment requirement for contractors on contracts over $75,000 when performing construction of new residential dwellings or remodeling/renovation work.