House Bill 1224 Summary

• Creates a sales and use tax exemption for licensed contractors acquiring tangible personal property for contracts with exempt entities, requiring a valid sales tax permit, purchasing agent authorization letter, and copy of the exempt entity's exemption certificate.

• Exemption applies only when tangible personal property becomes part of real property improvements and the exempt entity owns both the real property and improvements.

• Defines "exempt entity" as an entity issued a sales and use tax exemption certificate by the commissioner for its own purchases, excluding new or expanding businesses with exemptions on specific expansion projects.

• Amends the contractor use tax statute to add an exemption for tangible personal property purchased by an exempt entity or contractor under this Act when subsequently installed by a licensed contractor, under the same ownership and improvement requirements.

• Effective for taxable events occurring after June 30, 2017.