HB 4052

85(R) - 2017
House Ways & Means
House Ways & Means

Companion Bill

SB 745

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Jim Murphy

Bill Caption

Relating to the exemption of certain services performed by certain employees from the sales and use tax.

Fiscal Notes

The extent to which future tax revenue might decline, should evolving litigation expand the applicability of the exemption for services performed by an employee for an employer to the provision of otherwise taxable services, is unknown.  Therefore, the clarification of statute provided by the bill could prevent a future loss of sales and use tax revenue resulting from the outcome of litigation.

Bill Analysis

HB 4052 would further define which services performed by a temporary employee are tax exempt. This includes a service performed by an employee of a temporary employment service for a host employer to supplement the host employer's existing work force if:

  • the service is normally performed by the host employer's own employees;
  • the host employer provides all supplies and equipment necessary to perform the service, other than certain personal protective equipment;
  • the host employer does not acquire the supplies and equipment from the temporary employment service or an affiliated entity; and
  • the host employer has the sole right to supervise, direct, and control the work performed by the temporary employer as necessary to conduct regular business

Vote Recommendation Notes

This legislation neither creates nor abolishes a special tax exemption, rather, it clarifies a disputed provision within the statute regarding qualifications for an existing tax exemption. This legislation is a response to pending litigation between the state and an affected private industry. The clarifying changes made by HB 4052 neither affirm nor offend our liberty principles and we remain neutral.