2007 House Bill 5097 ↩

Senate Roll Call 395: Passed

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.