Notices: Sales and Use Tax Exemptions


The Division has received a number of bill requests for new sales and use tax exemptions to be introduced during the 1999 General Assembly Session. According to subsection C of § 30-19.1:3, which deals with limiting time for introduction and consideration of retail sales and use tax exemption bills:

C. Effective on and after July 1, 1998, any bill providing for a retail sales and use tax exemption shall be considered by the General Assembly only in regular sessions convened in even-numbered years.
Because the upcoming session is in an odd-numbered year, this subsection prohibits the General Assembly from considering new sales and use tax exemptions this session.

The entire section provides as follows:

§ 30-19.1:3. Limiting time for introduction and consideration of retail sales and use tax exemption bills.

A. Any bill providing for a new retail sales and use tax exemption shall be introduced for consideration by the General Assembly no later than the first calendar day of any regular session of the General Assembly convened in an even-numbered year, unless requested by the Governor.

B. No bill providing for a retail sales and use tax exemption shall be drafted or otherwise prepared by the Division of Legislative Services unless the drafting request is accompanied by the Department of Taxation’s preliminary determination as provided by subsection B of § 30-19.05.

C. Effective on and after July 1, 1998, any bill providing for a retail sales and use tax exemption shall be considered by the General Assembly only in regular sessions convened in even-numbered years.

D. The provisions of subsections A, B, and C of this section shall not apply with respect to any bill extending the expiration date or delaying the effective date of any retail sales and use tax exemption.


Sales and Use Tax Exemptions Expiring June 30, 1999

It is the intent of the co-chairmen of the House Finance Committee to introduce an omnibus sales and use tax exemption bill which will extend until June 30, 2000, all sales and use tax exemptions which are currently set to expire June 30, 1999. Any member may sign this legislation as a co-sponsor. Therefore, it will not be mandatory for individual members of the General Assembly to introduce separate bills for such purpose; however, members may do so if they decide it is necessary.


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