HB1174 to make social security benefits non-taxable for
state income tax was heard by House Finance and Tax Wednesday. The bill also
contains a provision to exempt those benefits from the income threshold for the
homestead property tax credit. That part of the bill however was inadvertently
added in drafting and the sponsor sought its removal.
NDACo is monitoring HB1158 and HB1159. HB1158 proposes exempting a purchaser from the payment of use tax if a retailer fails to collect sales tax on purchases up to $50,000. Under current law, a purchaser is required to report and pay use tax on any transaction where the seller fails to collect sales tax. The change in the sales tax law during the last session, requiring internet sales vendors to register with the State Tax Department, collect and remit sales tax, did not address or include non-internet out of state sales. The Committee questioned whether the changes proposed in HB1158 would encourage ND shoppers to buy out of state in order to avoid paying sales tax if there were no requirement for the retailer or purchaser to pay. No action was take on the bill.
HB1159 would exempt contractors and subcontractors from paying a use tax on tangible personal property used in the performance of their contract, unless the contract terms require the contractor or subcontractor to purchase the property. Current law requires contractors to pay sales or use tax on taxable items used when performing their contract work if the owner of the property did not pay the tax at the time of purchase. No action was taken on the bill.
SB 2192 allows counties, by ordinance, to charge a 2% lodging and 1% food and beverage tax on motels and restaurants within the county where a city is not already charging the tax. The bill also requires the county imposing the tax to establish a county visitors’ promotion fund and visitors’ committee which will serve as an advisory committee to the board of county commissioners. Senator Brad Bekkedahl introduced the bill. He says Williams County has over 500 beds outside the Williston city limits that currently cannot charge the tax, and in turn, do not receive the benefits of the promotions the Williston CVB offers. An amendment is forthcoming that would allow counties and cities the option to enter into a joint powers agreement and establish one committee and one fund for both the city and county food and lodging tax to be administered. Williston, Dickinson, and Devils Lake CVBs as well as McKenzie County Tourism and State Tourism Director, Sara Otte Coleman, provided testimony in support of the bill and for the amendments in SB2193 introduced by Senator Wardner. SB2193 amends language in sales tax law to be consistent with current language in city lodging tax law. The Tax Department confirmed that AIRBNB entered into an agreement with the State Tax Department last spring to register and remit lodging and restaurant taxes on their ND properties which are subject to these taxes. The Tax Department also reported that three ND cities – Fargo, Grand Forks, and Minot, collect their own lodging tax under their Home Rule Charters. The Committee did not take action on either SB2192 or the sister amendment bill SB2193, pending the additional amendments that are coming.
NDACo is monitoring HB1158 and HB1159. HB1158 proposes exempting a purchaser from the payment of use tax if a retailer fails to collect sales tax on purchases up to $50,000. Under current law, a purchaser is required to report and pay use tax on any transaction where the seller fails to collect sales tax. The change in the sales tax law during the last session, requiring internet sales vendors to register with the State Tax Department, collect and remit sales tax, did not address or include non-internet out of state sales. The Committee questioned whether the changes proposed in HB1158 would encourage ND shoppers to buy out of state in order to avoid paying sales tax if there were no requirement for the retailer or purchaser to pay. No action was take on the bill.
HB1159 would exempt contractors and subcontractors from paying a use tax on tangible personal property used in the performance of their contract, unless the contract terms require the contractor or subcontractor to purchase the property. Current law requires contractors to pay sales or use tax on taxable items used when performing their contract work if the owner of the property did not pay the tax at the time of purchase. No action was taken on the bill.
SB 2192 allows counties, by ordinance, to charge a 2% lodging and 1% food and beverage tax on motels and restaurants within the county where a city is not already charging the tax. The bill also requires the county imposing the tax to establish a county visitors’ promotion fund and visitors’ committee which will serve as an advisory committee to the board of county commissioners. Senator Brad Bekkedahl introduced the bill. He says Williams County has over 500 beds outside the Williston city limits that currently cannot charge the tax, and in turn, do not receive the benefits of the promotions the Williston CVB offers. An amendment is forthcoming that would allow counties and cities the option to enter into a joint powers agreement and establish one committee and one fund for both the city and county food and lodging tax to be administered. Williston, Dickinson, and Devils Lake CVBs as well as McKenzie County Tourism and State Tourism Director, Sara Otte Coleman, provided testimony in support of the bill and for the amendments in SB2193 introduced by Senator Wardner. SB2193 amends language in sales tax law to be consistent with current language in city lodging tax law. The Tax Department confirmed that AIRBNB entered into an agreement with the State Tax Department last spring to register and remit lodging and restaurant taxes on their ND properties which are subject to these taxes. The Tax Department also reported that three ND cities – Fargo, Grand Forks, and Minot, collect their own lodging tax under their Home Rule Charters. The Committee did not take action on either SB2192 or the sister amendment bill SB2193, pending the additional amendments that are coming.
The House Appropriations sub-committee assigned the DOCR budget held a hearing Wednesday morning to allow for testimony from the Dakota Women's Correctional and Rehabilitation Center. This will be an item to watch as the Governor is supporting moving women inmates housed in New England to the minimum security prison, MRCC, in Bismarck.
NDACo testified in opposition to SB 2134 which allows medical marijuana patients to grow marijuana at home. The opposition is centered around the amount of product allowed by this bill which is 3 ounces and 6 plants.
On the floor, the House approved HB 1242 which allows those under 21 to be in a bar that serves food. The Senate defeated SB 2131 which said guns or gun accessories manufactured in North Dakota would not have to be federally registered.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.