Senate Bill
SB38:
Repeals taxes that are In "nowhere"
Sponsor
Bill Primary sponsors
Dotson
Cosponsors
Filed: 1/9/2023 1:44:13 PM
Original Title
To amend the income tax provisions concerning the apportionment of business income; and to repeal the throwback rule.
Summary
What it does
This bill would get rid of a rule that generates tax revenue from multi-state businesses. The rule requires those businesses to pay taxes to the state on sales that are essentially “nowhere sales” – sales to the federal government or to untaxed entities. Elimination of the rule was recommended by the state’s Tax Reform and Relief Legislative Task Force. In 2018, the Department of Finance and Administration estimated elimination of this rule would reduce state revenue by $24.5 million. In a recent news article, Rep. Howard Beaty Jr. estimated the reduction in state revenue from $25 million to $75 million.
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Status
Senate: REVENUE & TAX
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