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Committee discusses SB 109 remittance credit for retailers but holds bill for revisions
Summary
Senate Bill 109 would create a remittance credit equal to 1.5% of sales and compensating use tax remitted to retailers, with a $300 monthly cap per retailer; senators raised concerns about fiscal cost and whether it targets small businesses, and the committee decided to hold the bill to allow further drafting and possible amendments.
Senate Bill 109 would provide retailers a remittance credit equal to 1.5% of sales and compensating use tax remitted, subject to a monthly cap of $300 per retailer. Committee staff summarized the measure and members discussed whether the credit should exclude "big box" stores to concentrate benefits on small businesses.
Why it matters: supporters said the credit offsets administrative costs retailers incur collecting and remitting sales taxes. Critics said the fiscal-note estimate—about $60 million—was too large relative to other tax priorities and questioned whether the credit would effectively incentivize desired behavior.
Committee discussion: Senator Peck asked whether the bill could be drafted to exclude large retailers; the chair said conceptual amendments were acceptable and encouraged further work with revisers. Senator Corson (concerned about the fiscal note) said, "A $60,000,000 fiscal note is really significant," and said he would reluctantly oppose the bill in its current form. Senator Schallenberger questioned how tax breaks influence behavior and said he did not oppose advancing the bill if a motion were made.
Next steps: the committee chose not to work the bill at this meeting; senators agreed to allow the vice chair time to consult with revisers on possible amendments intended to better target small retailers and to revisit the fiscal note before further action.
Ending: The committee left SB 109 pending while staff and senators consider targeted drafting to address the fiscal estimate and the small-business focus.
