1109-S AMH YOUN FRAS 833

  

SHB 1109 - H AMD 465

By Representative Young

NOT ADOPTED 03/29/2019

On page 303, after line 19, insert the following:

"NEW SECTION. Sec. 779. FOR THE OFFICE OF FINANCIAL MANAGEMENT--SALES TAX HOLIDAY 2020 ACCOUNT.

General Fund--State Appropriation (FY 2021) . . . . . $45,000,000

TOTAL APPROPRIATION . . . . . . . . . . . . . . . $45,000,000

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for expenditure into the sales tax holiday 2020 account created in subsection (2) of this section for purposes of implementing House Bill No. 1559 during the 2020 back-to-school shopping season.

(2) The sales tax holiday 2020 account is created in the state treasury. Moneys in the account may be spent only after appropriation and may be used only to implement House Bill No. 1559 (sales tax holiday) pursuant to this section.

(3) After the 2020 back-to-school sales tax holiday established under House Bill No. 1559, the department of revenue must calculate the amount of revenue that would have been deposited in the state general fund but for that sales tax holiday. The department shall notify the state treasurer of the amount calculated under this subsection, and the state treasurer, before January 1, 2021, must transfer the lesser of that amount or forty-five million dollars from the sales tax holiday 2020 account into the general fund."

EFFECT:   Appropriates $45 million into newly created Sales Tax Holiday 2020 Account for purposes of implementing the 2020 back-to-school sales tax exemption under HB 1559, which exempts certain clothing and school supplies from sales tax during one weekend in August each year. Transfers up to $45 million from the Sales Tax Holiday 2020 Account back to the GFS to replace the GFS revenue foregone during the tax holiday.

FISCAL IMPACT:

Increases General Fund - State expenditures by $45,000,000. Increases General Fund - State resources to offset a portion of revenue reductions from HB 1559.

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