HB 8 Summary

• Increases the sales and use tax prompt remittance discount from three-fourths of one percent to five percent for vendors who file returns and pay taxes on time by the 23rd of each month.

• Establishes a combined annual discount limit of $10,000 per vendor across both sales/use tax and income tax withholding discounts.

• Authorizes a new five percent discount for employers who file income tax withholding returns and remit taxes by the required due dates, also subject to the $10,000 annual combined limit.

• Simplifies income tax withholding payment requirements by removing outdated phase-in thresholds and replacing them with a single $84,000 threshold for determining which payment schedule applies.

• Applies these amendments to returns filed on or after the first day of the first month beginning after the bill's effective date, with the $10,000 limit prorated for the initial year.