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New Commercial Property Tax Bills Pass House Tax

March 28, 2007
March 28, 2007.  House Bills 4375 and 4376 that would create a new tax for commercial rental property passed out of the House Tax Policy Committee yesterday.  A Treasury spokesperson said the new tax would increase revenues by $5 million in the next fiscal year.

The Senate amended its BEST plans contained in Senate Bills 94, 95 and 96.  Under the revised plan a gross receipts tax will be imposed at .54%.  The proposed tax on net worth has been eliminated.  A business income tax will be imposed at 1.5%.  A personal property tax credit will be granted against the tax of 25%.  Any industrial personal property would be exempt from personal property tax beginning in 2008.

The House Tax Policy Committee will take up bills to publish names of delinquent taxpayers (i.e., in newspapers and on the internet) (HB 3271) and to eliminate sales tax exemptions for property purchased with prison script (HB 4374).