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Bill to expand sales tax to selected services and to cover nicotine products draws concerns about prepayment and public‑health carve‑outs
Summary
Senate Bill 5814 would expand retail sales tax to a set of services, include nicotine products under the tobacco tax regardless of nicotine source, and require a one‑time sales‑tax prepayment by large monthly filers; staff presented revenue estimates and implementation costs.
Senate Bill 5814 would extend retail sales tax and the retailing B&O classification to a range of services, broaden the tobacco tax to include products containing nicotine regardless of source, and require a one‑time prepayment of sales tax collections by large monthly filers, Ways & Means staff said at an April 16 briefing.
Alia Kennedy, committee staff, explained the bill’s components: add selected services — custom software and web design, certain security and investigation services, temporary staffing, advertising services, and other specified digital automated services — to the retail sales tax base; expand the tobacco‑related excise tax to cover nicotine products whether derived from…
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