Cash Transaction Measure Passes First Senate Stop
On Tuesday, SB 106- Acceptance of Cash Payments by Sen. Jones passed unanimously in its first Senate committee, Commerce and Tourism. FAC supported the bill in committee.
The bill requires businesses to accept cash for in-person transactions of tangible goods or services alongside other payment methods without imposing additional fees or conditions. Exemptions include non-in-person transactions, municipal parking facilities, certain professional services, suspected counterfeit cash, large cash denominations, and transactions over $5,000. Violations result in civil penalties ranging from $2,500 to $10,000, administered by the Department of Agriculture and Consumer Services, which also establishes enforcement rules. The House companion, HB 35 by Rep. Rudman, has not been heard yet.
Electric Vehicle Measure Heard in Both Chambers; Potential House Amendment Reshapes Bill
On Wednesday, CS/SB 28 - License Taxes by Sen. Hooper passed (6-0) its first committee stop, Senate Transportation.
The bill imposes additional annual registration fees of $200 for electric vehicles (EVs) and $50 for plug-in hybrid electric vehicles (PHEVs), rising to $250 and $100, respectively, in 2029. 36% of the associated revenues are allocated to counties and municipalities for transportation-related expenses. This represents an effort to replace lost revenue from local fuel taxes with more non-fuel vehicles on the road.
HB 107 Electric and Hybrid Vehicle License Fees by Rep. Esposito was initially scheduled for the House Transportation and Modals Subcommittee on Thursday. A strike-all amendment was filed that directs the Revenue Estimating Conference to conduct a Special Estimating Session to determine the two-year General Revenue impact resulting from the sales tax on electricity used for charging electric vehicles. One-twelfth of this revenue estimate is to be distributed monthly to the State Transportation Trust Fund—no money will be allocated to counties or municipalities.
Additionally, the bill directs the Office of Economic and Demographic Research to conduct a study on the long-term fiscal impacts of continued EV and PHEV adoption to the State Transportation Trust Fund and sales tax/gross receipts revenues. The bill was temporarily postponed due to the title amendment.
House Committee Approves County Attorney Public Records Exemption
On Wednesday, CS/HB 103- Public Records Exemption for County and City Attorneys by Rep. Arrington passed unanimously in its first committee stop, the House Civil Justice Subcommittee.
The bill provides a public records exemption for the personal identifying and location information of current county attorneys, assistant county attorneys, deputy county attorneys, city attorneys, assistant city attorneys, deputy city attorneys, and the spouses and children of such. FAC supported the bill in committee. The Senate companion, SB 712 by Sen. Powell, was filed earlier this week but has not yet been assigned its committee references.
Senate Committee Hears Presentation on Communications Services Tax
On Wednesday, the Senate committee on Finance and Tax heard a presentation on Communication Services Tax (CST), delivered by the committee’s staff director, Azhar Khan. The presentation conveyed that communication services primarily involve the transmission of a signal, with no taxation on peripheral mechanisms enabling transmission. The presentation detailed the collection of CST on both state and local levels. Mr. Khan explained the evolving methodology in local CST collection, explaining the rise of each local government's individual CST conversion rate for more uniform local-level collection. Local CST is allocated under the same stipulations as county local option sales tax, contributing to their respective local government revenue. Despite a discrepancy in State and Local CST collections, favoring the state, Mr. Khan noted that approximately 20% of state CST is shared with local governments, including a portion of state direct-to-home satellite revenues allocated to fiscally constrained counties. Projected CST collections for FY 2024-2025 are estimated at $1.8 billion for the state, with $725 million from local CST. The presentation provided a Local Government CST Rate Flowchart, which can be seen at the end of the meeting package linked below. Before the committee concluded their meeting, FAC’s Bob McKee provided historical context and a detailed analysis of the CST landscape, drawing on his role in the working group that contributed to the original construction of the Communications Service Tax.
The presentation can be accessed below:
Video; Meeting Packet
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