HSB 552

Currently, a person is required to file a sales or use tax return on a quarterly basis. The bill changes this filing requirement from a quarterly basis to a monthly basis. The bill does allow a person required to file a sales or use tax return and who collects less than $1,200 in sales or use tax in a calendar year, to file a return once a year on or before the last day of the month following the close of the calendar year.1(48)(a)(1), to be issued only one sales or use tax permit. The bill allows the director of revenue, if necessary, to ensure the payment of sales or use tax, to require a sales or use tax return be filed on a different basis other than on a monthly basis. The bill strikes a provision allowing a person required to file a sales or use tax return to take a credit against the total quarterly amount of tax due, upon a proper showing of necessity, allowing for the balance of tax due to be paid up to days after the return was due. The bill strikes a provision requiring a seller, who collects more than $30,000 of sales or use tax in the preceding calendar year, to make additional remittances to the state under the rules adopted by the director of revenue. _____ AND SCHOOL DISTRICTS. Currently, by August 15, the department of revenue estimates the local option sale tax (LOST) and securing an advanced vision for education (SAVE) tax amounts that will be transferred to each local government or school district on a fiscal year and monthly basis. The transfer estimates may be revised for the year and remaining months by the director of revenue if the estimates are incorrect. Commencing with the fiscal year beginning July 1, 2022, the bill changes the LOST and SAVE transfer amount procedures, by requiring the department of revenue to transfer the actual LOST and SAVE taxes collected that are attributable to each local government or school district to that local government or school district. The bill also creates a transition procedure for the LOST and SAVE tax amounts transferred during July and August 2022. Under the transition procedure, the department of revenue shall transfer estimated amounts of LOST and SAVE to each local government or school district for the months of July, August, and September 2022. However, beginning with the October 2022 transfer, the department of revenue shall transfer the actual amount of tax attributable to each local government or school district for the LOST and SAVE tax remitted in September 2022. The bill requires any adjustment amount that is necessary to the July, August, or September 2022 estimated transfer amounts be made by the close of business on December 30, 2022. DIVISION III —— LIABILITY OF SELLERS USING CERTIFIED SERVICE PROVIDER. The bill specifies that a seller of personal property or services who contracts with a certified service provider is not liable to the state for sales or use tax due on transactions processed by the certified service provider unless the certified service provider establishes it is not liable in accordance with the agreement with the seller. The bill specifies that if the certified service provider is liable for the sales or use tax due, the seller is not subject to audit on transactions processed by the certified service provider.1 to mean an agent certified under the agreement to perform all of a seller’s sales or use tax functions, other than the seller’s obligation to remit tax on its own purchases. DIVISION IV —— AUTHORITY TO CANCEL VARIOUS PERMITS ISSUED BY THE DEPARTMENT. The bill allows the director of the department of revenue to cancel the following tax permits if the department determines the permits are no longer in use: income tax withholding, sales or use tax, or motor fuel tax. DIVISION V —— ECONOMIC DEVELOPMENT AUTHORITY SALES AND USE TAX REFUND INCENTIVES.331A administered by the department of economic development authority, an eligible business must apply for a sales or use tax refund for items purchased prior to the “project” completion date. The bill changes the refund procedures by requiring an eligible business to apply for such sales or use tax refunds for items purchased prior to the completion of the “contract” rather than completion of the “project”. The bill also requires such an application be made within one year of the project completion date, and that the department of revenue be informed in writing after the contract completion. The bill defines “contract completion” as the date of completion of a written contract relating to the construction or equipping of the facility that is part of the project of the eligible business.331A. The bill also provides that the eligible business shall make an application to the department of revenue within one year of the project completion date, and that the department be informed in writing after the contract completion. _____ claim, prior to issuing a third-party developer tax credit certificate.355. The bill permits a housing business to claim a refund of the sales and use taxes paid prior to the completion of the housing project that are directly related to the housing project and specified in an agreement. In order to receive the sales and use tax refund, the bill requires a contractor or subcontractor working on the housing project to submit a form under oath stating the amount of sales and use taxes paid prior to the housing project. The bill makes it a simple misdemeanor if a contractor or subcontractor willfully makes a false claim under oath in relating to the workforce sales and use tax refund. The bill then requires, after the agreement completion date, the housing business to make an application to the department of revenue for any sales and use tax refund. The bill defines “agreement completion date” to mean the date the economic development authority notifies the department of revenue that all applicable requirements of the agreement have been met. The bill also requires the department of revenue to audit the claim prior to issuing the sales and use tax refund. This division takes effect upon enactment and applies to claims for refunds filed on or after the effective date of the bill. DIVISION VI —— MOTOR FUEL REPORTING REQUIREMENT —— PENALTY.61. The bill permits the department of revenue to require a retail dealer to file such a report with the department by electronic transmission. _____ $100, for each instance a retail dealer fails to timely file a report or fails to maintain records required to file the report. DIVISION VII —— MOTOR FUEL TAX TERMINOLOGY MODIFICATIONS. The bill modifies terms in Code chapter 452A (motor fuel and special fuel taxes). The bill substitutes the term “permit” for the term “license” wherever the term “license” appears. By substituting the term “permit” for the term “license”, the bill also strikes related terms to “license” including “licensed” and “licensee” and substitutes “permitted” and “permit holder” in lieu of “licensed” and “licensee”.