Bill Status of HB1626 93rd General Assembly
Short Description: USE TAX-REMOTE SALES
Rep. George Scully, Jr.
| 1/11/2005||House||Session Sine Die|
Statutes Amended In Order of Appearance
Synopsis As Introduced
Amends the Use Tax Act and the Service Use Tax Act. Provides that Department of Revenue is authorized to contract with credit card issuers to collect the tax imposed by these Acts on Internet sales, phone order sales, and direct-mail sales. If a credit card issuer enters into such a contract with the Department, the issuer must state as a separate item on the monthly bill to customers the tax charged under these Acts. A credit card issuer is entitled to reduce the amount of the tax collected under these Acts that it remits to the Department by the amount of costs incurred by the company to collect the tax or 4% of the revenue generated from the sale on which the tax is collected, whichever is greater. Effective immediately.
| ||Fiscal Note (Department of Revenue)|
| ||HB 1626 allows for the credit card company to keep 4% of the revenue generated by the sale or actual costs incurred to collect the tax (whichever is greater). In addition, there is no cap on the amount the credit card company may keep. This proposal could result in fiscal loss because the credit card companies' cost of collection allowance is significantly higher than the 1.75% amount currently allowed to in-state vendors. The credit card company could end up retaining more than half of the tax collected. |