HB 600 Summary

• Creates sales and use tax relief fund to receive remote seller use tax collections, with funds prioritized first to repay federal unemployment insurance debt, then to offset sales/use tax rate reductions, then to offset commercial activity tax rate reductions.

• Establishes mechanism for automatic sales tax rate reductions (up to 0.5 percentage points) and use tax rate reductions when remote seller collections accumulate sufficiently in the relief fund.

• Creates commercial activity tax relief fund from remaining remote seller use tax collections after unemployment debt repayment, with authority to reduce commercial activity tax rate by up to 0.6 mills per dollar based on fund balance.

• Amends sections 5739.02 and 5741.02 to make tax rates subject to reductions under the new relief fund mechanisms rather than fixed at 5.75%.

• Director of Budget and Management must calculate on July 31 each year whether sufficient remote seller use tax collections exist to trigger automatic tax rate reductions for the following fiscal/tax year.