2007 House Bill 5254

Expand service tax to extend the 6 percent use tax

Introduced in the House

Sept. 19, 2007

Introduced by Rep. Andy Meisner (D-27)

To a variety of services and items that are currently exempt including toll free phone services (800-numbers, WATTS lines, etc.) and international calls; food from vending machines, meals provided by an employer to employees; magazines; movies; retail sales the debt for which is uncollectible; vehicles and certain other property owned by a business when the business is sold to a new owner; certain air, truck and rail equipment used in interstate commerce; industrial pollution control equipment; industrial machinery computere components and its software; and much more. The bill was introduced in the midst of a contentious budget battle and according to news reports, some of the provisions were intended to pressure the business community into supporting tax hikes that would allow the state to avoid spending cuts.

Referred to the Committee on Tax Policy

Sept. 24, 2007

Substitute offered by Rep. Andy Meisner (D-27)

To replace the previous version of the bill with one that repeals fewer exemptions. See House-passed version for details.

The substitute passed by voice vote

Amendment offered by Rep. Andy Meisner (D-27)

To clarify that the various tax exemptions would be repealed as of Oct. 1, 2007.

The amendment passed by voice vote

Passed in the House 58 to 49 (details)

To a variety of services and items that are currently exempt including toll free phone services (800-numbers, WATTS lines, etc.) and international calls; food from vending machines, meals provided by an employer to employees; magazines; movies; retail sales the debt for which is uncollectible; certain air, truck and rail equipment used in interstate commerce; industrial pollution control equipment; industrial machinery computere components and their software; and much more. The bill was introduced in the midst of a contentious budget battle and according to news reports, some of the provisions were intended to pressure the business community into supporting tax hikes that would allow the state to avoid spending cuts.

Received in the Senate

Sept. 25, 2007

Referred to the Committee of the Whole

Sept. 27, 2007

Referred to the Committee on Government Operations and Reform