SB 0688 Makes various changes to sales and income tax laws to close loopholes
Sponsor:Russell Co-Sponsor(s)
LR Number:1970S.01I Fiscal Note:1970-01
Committee:Ways and Means
Last Action:03/10/03 - Second Read and Referred S Ways and Means Committee Journal page:S426
Effective Date:August 28, 2003
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Current Bill Summary

SB 688 - This act makes various changes related to taxation. The act:

(1) Modifies the way losses and operating expenses are deducted among parties for various types of property, including intellectual property. Minimum standards are established regarding what connections among various corporate entities constitute related parties and affiliated groups for multi-state corporate income tax purposes;

(2) Prohibits retailers from obtaining refunds of sales and use taxes without crediting the original purchasers. In the case of over-collections of less than $1,000, such over-collections may be refunded without the higher burden of returning the funds to the purchaser. The $1,000 threshold is an aggregate sum over a five-year period. A retailer, upon submission of an approved plan by the Director of the Department of Revenue, may offer fixed value coupons to customers to satisfy the distribution of the over-collections; and

(3) Restricts the current definition of "common carrier" for purposes of qualifying for a state and local sales and use tax exemption.