Bill: HB 2250, 85(R) - 2017
Committee
House Ways & Means
Vote Recommendation
| Vote Recommendation |
Economic Freedom |
Property Rights |
Personal Responsibility |
Limited Government |
Individual Liberty |
| Yes |
Positive |
Neutral |
Neutral |
Neutral |
Neutral |
Author(s)
Drew Darby
Bill Caption
Relating to the classification of certain entities as primarily engaged in retail trade for purposes of the franchise tax.
Fiscal Notes
Estimated Two-year Net Impact to General Revenue Related Funds for HB2250, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2019.
Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($2,561,000) for the 2018-19 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.
Bill Analysis
Regarding the franchise tax, HB 2250 would amend the definition for activities engaged in retail trade for purposes of the franchise tax by including activities involving the rental of industrial uniforms, industrial garments, and industrial linen supplies that are classified as linen supply and industrial launderers in the 1987 Standard Industrial Classification Manual.
Vote Recommendation Notes
Although we do not believe in the value of the franchise tax, we support this bill because it would expand the category of retail trade to include a larger number of businesses which would place them on equal footing with other retailers with respect to their franchise tax obligation. Ultimately we would prefer to see the franchise tax phased out entirely over a period of time. However, we support this bill as an enhancement of limited government for applying tax treatment more equally to similarly situated businesses.
