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Committee advances bill expanding sales tax base for services, adds cigarette tax amendment; reported out 8–7
Summary
The House Finance Committee voted to advance Engrossed Substitute Senate Bill 58 14, which would expand the sales-tax base to some services and digital services and impose new tobacco/cigarette taxes, reporting the bill out of committee 8–7 after adopting a striking amendment and a separate cigarette-tax amendment.
The House Finance Committee on Tuesday reported Engrossed Substitute Senate Bill 58 14 out of committee with a due-pass-as-amended recommendation after adopting a suite of amendments, including an amendment that would impose an additional cigarette tax.
Committee staff described the bill as extending retail sales tax to certain services and digital automated services, making some products containing nicotine subject to other tobacco taxes, imposing an additional tax on cigarettes and including a sales-tax prepayment mechanism. The committee considered a wide range of striking amendments and numerous targeted fixes; several proposed amendments were withdrawn by sponsors in order to continue work between…
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