estimated sales tax payment;
repeal
Effective FY 2002-2003, eliminates the requirement for taxpayers with a combined annual state transaction privilege, telecommunication excise and county excise tax liability to remit June estimated payments.
In 1989, estimated payments were established for businesses with an annual transaction privilege, telecommunication excise and county excise tax liability of $100,000 or more. For each month, this required the taxpayer to remit tax collections from the first 15 days of the month at the same time the tax return is due for the prior months collections. This measure was enacted as a means of accelerating state revenue collections into FY 1989-1990. In July of 1993, required estimated tax payments were eliminated for the time period of July through May of each year, however, the June estimated payment remains.
H.B. 2548 eliminates the June required estimated tax payments. The Department of Revenue indicates that estimated transaction privilege, telecommunication excise and county excise taxes totaling $117.1 million were received in FY 1999-2000, and that this legislation will cause a one time shift in general fund revenue away from FY 2002-2003. Using a eight per cent annual growth rate each year from FY 1999-2000 to FY 2002-2003, the adverse general fund impact in FY 2002-2003 is approximately $147.4 million.
Provisions
· Eliminates the June estimated tax payment requirement beginning FY 2002-2003.
· Contains an effective date of January 1, 2002.
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45th Legislature
First Regular Session 2 February
9, 2001
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