Sponsored by Rep. Carlyle, HB 2038 does the following:
- Permanently extends the 0.3 percent business and occupation (B&O) surtax on service businesses.
- Eliminates the preferential B&O tax rate of 0.484 percent for insurance agents.
- Eliminates the preferential B&O tax rate of 0.275 percent for travel agents and tour operators.
- Eliminates the preferential B&O tax rate of 0.275 percent for stevedoring.
- Repeals the sales and use tax exemption for bottled water.
- Repeals the nonresident sales and use tax exemption for tangible personal property.
- Modifies and extends the beer tax.
- Imposes sales and use tax on janitorial services.
- Modifies the high technology tax credit for research and development.
- Expires the high technology sales and use tax deferral program on July 1, 2013.
- Eliminates the public utility tax deduction for the in-state portion of interstate transportation.
- Narrows the B&O and sales and use tax exemptions or import commerce.
- Eliminates the preferential B&O tax rate of 0.138 percent for resellers of prescription drugs.
- Repeals the use tax exemption for extracted fuel produced by an extractor or manufacturer during the extracting or manufacturing activity.
House floor amendment: Substitute bill removes the provisions of the bill permanently extending the beer tax; imposing sales tax on janitorial services; and eliminating the preferential B&O tax rates for stevedoring and insurance agents.