SB 745

85(R) - 2017
Senate Finance
Senate Finance

Companion Bill

HB 4052

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Lois Kolkhorst

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

SB 745 would further define which services performed by a temporary employee are tax exempt. This includes additional eligibility requirements which focus on as little affiliation between the temporary employee and the host employer as possible. The employee must also be under the sole direction and control of the employer to be eligible for tax exemption. 

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 SB 745 neither affirm nor offend our liberty principles and we remain neutral.