SB 2333 Summary

• Exempts gross receipts from clothing sales from state sales and use taxes, defining clothing as human wearing apparel suitable for general use.

• Includes 35 specific clothing items in the exemption such as apparel, footwear, hosiery, uniforms, and accessories like belts and gloves.

• Excludes fur clothing, costume masks, jewelry, handbags, protective equipment, sports equipment, and sewing supplies or materials from the exemption.

• Directs the tax commissioner to allocate $9,500,000 in two equal annual installments to cities and counties for the biennium July 1, 2011 through June 30, 2013 to offset lost sales tax revenue, distributed proportionally based on each jurisdiction's share of statewide home rule sales tax collections.

• Effective for taxable events occurring after June 30, 2011.