SSB 1204

Topics:Taxes

Same legislation: HSB 68, HF 664

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedMarch 13, 2023
Done: SubcommitteeMarch 13, 2023
Done: Senate committeeApril 3, 2024
Done: Passes the SenateApril 10, 202445–0
Skipped: House committeeSkipped
Done: Passes the HouseMay 1, 202394–0
Done: To the GovernorMay 2, 2024
Done: Signed into lawMay 17, 2024

HF 664 became law → The same legislation passed as HF 664, so this version was set aside. Go to HF 664 What’s a funnel?

What’s in it

This bill exempts certain leases or rentals between affiliates from the sales and use tax and from the fee for new vehicle registration.105A(2) has been paid by the lessor prior to the lease. _____ rental of personal property between affiliates when a sales tax, use tax, or fee for new registration for a vehicle has been paid by an affiliate on the personal property leased or rented prior to such lease or rental. The bill requires refunds of taxes, interest, or penalties arising from claims resulting from the enactment of the bill for leases or rentals occurring between January 1, 2015, and the effective date of the bill to be filed prior to October 1, 2023.

Read the full explanation

Refunds of taxes, interest, or penalties shall not exceed $15,000 in the aggregate in any calendar year in which claims are eligible for a refund. If the amount of claims totals more than $15,000 in the aggregate for any calendar year in which claims are eligible for a refund, the department of revenue shall prorate the $15,000 in the aggregate among all the claimants for that particular calendar year. The bill defines “affiliate” to mean an entity that directly or indirectly controls, is controlled with or by, or is under common control with another entity. The bill defines “control” in most instances to mean the ownership, directly or indirectly, of percent or more of the voting power to elect directors. The bill takes effect upon enactment and applies retroactively to January 1, 2015, for leases or rentals occurring on or after that date.

Changed since by amendment S-5138; see Amendments.

Full bill text · What changed before it passed¹

Senate subcommittee

Named March 13, 2023. On April 12, 2023 it recommended passage. [].

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

AI summary This bill exempts certain vehicle leases and rentals between affiliated businesses from sales and use taxes and new registration fees. It is estimated to reduce revenues for the General Fund, the SAVE Fund, LOST, and the Road Use Tax Fund from fiscal year 2025 through fiscal year 2029. For example, in fiscal year 2027, the bill is estimated to reduce the General Fund by $2.4 million, the SAVE Fund by $0.2 million, LOST by $0.2 million, and the Road Use Tax Fund by $0.9 million.²

From the note: House File 664 is estimated to reduce revenues to the General Fund, SAVE Fund, LOST, and the RUTF by the amounts in Figure 2.