85(R) - 2017
House Ways & Means
House Ways & Means
Relating to the retention and use of sales tax revenue collected by certain retailers to provide job training and placement services to certain persons.
Estimated Two-year Net Impact to General Revenue Related Funds for HB518, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2019.
There would be a negative impact of ($14,900,000) to the General Revenue Fund through the biennium ending August 31, 2021.
HB 518 would allow qualified retailers certified by the comptroller to retain a certain amount of the sales tax they collect to provide job training and placement services to persons with disabilities, low education, criminal records, and/or those without homes.
In the first year of certification, retailers would be able to retain the lesser of 30 percent or $1 million of sales tax revenues they collect, and use the money to improve infrastructure to provide such services. For each subsequent year of certification, they may retain the lesser of 50 percent or $1 million of sales tax imposed on them. Qualifying organizations will hold the certification for three years until completion or renewal is required. Retailers who have failed to comply with appropriately using this money will have their certification revoked and will have to remit a designated amount in tax collections. No retailer may be certified until September 2019.
Vote Recommendation Notes
Registered nonprofit organizations which run retail stores selling donated goods do not need taxpayer subsidies to run their charitable operations. While we recognize the value of these programs being offered by charitable organizations (which is the proper domain for such programs) it is not the proper role of a limited government to fund these private training programs with tax dollars. For these reasons we oppose HB 518.