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DIGEST OF INTRODUCED BILL
Sales tax on vending machine items. Provides that certain exemptions from the state gross retail tax, except for an exemption for the sale of newspapers, do not apply to wholesale sales of tangible personal property to vending machine operators for resale through a vending machine. Provides that in such a transaction, the wholesaler is not considered a retail merchant making a retail transaction for purposes of collecting and remitting the state gross retail tax. Provides that the vending machine operator that purchases the tangible personal property is responsible for remitting the state gross retail tax due on the transaction. Provides that the state gross retail tax is imposed on the amount of the gross retail income received by the wholesaler in the transaction multiplied by 120%. Provides that a wholesaler must provide periodic reports on sales to vending machine operators to the department of state revenue. Requires the department of state revenue to submit a report to the governor, the budget director, and the legislative council not later than March 1, 2009, that compares: (1) the total amount of state gross retail and use taxes remitted by vending machine operators during the calendar year ending December 31, 2003; and (2) the average of the total annual amounts of state gross retail and use taxes remitted by vending machine operators during the five calendar years beginning January 1, 2004, and ending December 31, 2008. Provides that the new reporting requirements and new method of calculating the state gross retail and use tax liability of vending machine operators expire July 1, 2009, if the amount of taxes collected during the calendar year ending December 31, 2003, exceeds the average annual amount collected during the five year period ending December 31, 2008.