SB 0372 Allows abatement and prospective application of taxes in certain situations
LR Number:1440S.04P Fiscal Note:1440-04
Committee:Ways and Means
Last Action:05/01/01 - Hearing Conducted H Ways & Means Committee Journal page:
Title:SS SCS SB 372
Effective Date:August 28, 2001
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Current Bill Summary

SS/SCS/SB 372 - This act authorizes the Department of Revenue (DOR) and the Administrative Hearing Commission (AHC) to abate all or part of the tax liability of a taxpayer in certain situations, including those situations in which:

1. The taxpayer fails to collect, account for or pay a tax which others in the same industry or occupation also failed to pay, perhaps due to miscommunication between DOR and a specific industry or profession about the taxability of a certain event or transaction; 2. The taxpayer does not have sufficient ability to pay the entire amount of the tax due; or 3. Collection of the tax would undermine compliance with the tax laws.

The act directs that in situations where DOR or the AHC grant this type of relief to a taxpayer, the application of the tax at issue shall be prospective for that taxpayer, such that the taxability of the event or transaction begins after the DOR or AHC decision on the issue. In order to qualify for whole or partial abatement, a taxpayer must agree to several conditions set forth in the act, such as paying his or her own attorney fees and expenses. The taxpayer has a right to rely upon agreements made by the Dept. of Revenue pursuant to the act.

The act also provides a sales tax exemption for retailers who donate inventory to private or public elementary or secondary schools and approved private or public institutions of higher learning.