Directs the state, cities, towns, and identified business associations to partner in developing options for centralized and simplified administration of local business and occupation taxes and business licensing and to evaluate the following: (1) Options to coordinate administration of local business and occupation taxes;

(2) Options for centralized administration of local business and occupation taxes for those cities and towns that desire to participate in a state-provided alternative;

(3) Options for all cities and towns to partner with the state business licensing service; and

(4) Implementing data sharing and establishing a seamless state and local user interface for those cities and towns participating in FileLocal.

Creates the task force for local business tax and licensing simplification and requires the task force to prepare a report to the legislature with the following: (1) Additional or alternative options to improve the administration of local business tax and licensing;

(2) An examination of the differences in apportionment and nexus between state and local business and occupation taxes and how these differences affect taxpayers and cities; and

(3) Recommendations that address the issues described in (1) through (4) above.

Requires the department of revenue to serve as the task force chair and staff the task force.

Provides a February 1, 2017, termination date for the task force.