Introduced
by
To limit a “bad debt” allowance that businesses can deduct from the amount of sales tax they are required to pay, so that only firms that remit taxes for the a specific transaction qualify for the deduction. Essentially the bill would retroactively change some definitions in the Sales Tax Act (related to who is a "taxpayer" for purposes of claiming a bad debt deduction) that will have the effect of reversing the judgement of the Supreme Court in the case "DaimlerChrysler Services North America, LLC v. Department of Treasury," under which the state will be required to honor $93 million in tax refund claims. The bill would also result in an additional $30 million in annual sales and use tax paid by business in the future.
Referred to the Committee on Tax Policy
Substitute offered
by
To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.
The substitute passed by voice vote
Passed in the House 57 to 52 (details)
Referred to the Committee of the Whole
Passed in the Senate 22 to 16 (details)
To limit a “bad debt” allowance that businesses can deduct from the amount of sales tax they are required to pay, so that only firms that remit taxes for the a specific transaction qualify for the deduction. Essentially the bill would retroactively change some definitions in the Sales Tax Act (related to who is a "taxpayer" for purposes of claiming a bad debt deduction) that will have the effect of reversing the judgement of the Supreme Court in the case "DaimlerChrysler Services North America, LLC v. Department of Treasury," under which the state will be required to honor $93 million in tax refund claims. The bill would also result in an additional $30 million in annual sales and use tax paid by business in the future.
