Conference committee pauses on House Bill 1428 after debate over clothing sales-tax exemption for nonprofits

Representative Haggard convened a conference committee on House Bill 1428 to reconcile differing House and Senate language on a sales-tax exemption for clothing sold by nonprofit thrift stores. Lawmakers spent the meeting discussing whether the exemption should apply only to used clothing, as in the House bill, or to all clothing, as amended by the Senate to meet compliance with the streamlined sales-and-use-tax rules.

The issue matters because, as Senator Rummel explained, the state must remain in compliance with the streamlined sales-and-use-tax requirements or risk losing reciprocal agreements with other states. "We missed it in the committee, and we found out that we were in violation of some issues dealing with our uniform sales tax code amongst all of the states," Rummel said, adding that the Senate amended the bill in appropriations to "come into compliance." The Senate amendment replaced a narrower "used clothing" exemption with an exemption for all clothing after members concluded the Century Code lacked a clear definition of…