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Committee introduces RS 32206 to exempt small sellers under $5,000 from sales-tax permits; amendment adds vessel definition
Summary
The Revenue and Taxation Committee introduced RS 32206, which would exempt sellers with annual sales below $5,000 from needing a sales-tax permit; Representative Jason Monks cited 10,701 permits in 2023 and the measure was introduced with an amendment adding a vessel definition referring to section 67-7003.
The Revenue and Taxation Committee voted to introduce RS 32206, a proposal that would exempt sellers with annual sales under $5,000 from obtaining a sales-tax permit, Representative Jason Monks said.
The measure aims to reduce permit and processing burdens for very small, informal sellers such as homeowners selling surplus fruit or eggs; Representative Monks said the exemption would apply cumulatively across a seller's activities and that storefronts, alcohol sales, and vehicle sales would be excluded.
Representative Jason Monks, presenting the RS, described informal sales on his own property and said the exemption was meant to ease burdens on low-volume sellers: "If you sell less than $5,000 you don't have to get a permit, and that's it, that's what the bill does." He told the committee the office's records showed 10,701 seller permits in 2023 for accounts reporting under $5,000 in sales and that those permits generated "a little over a million dollars" in revenue while imposing processing costs.
Monks said the proposal would not apply to businesses with storefronts and would not change existing rules for alcohol or vehicle sales. In response to a question from Representative Raybould, Monks clarified that the $5,000 threshold is cumulative across a person's sales activity and cannot be circumvented by splitting activities into multiple informal enterprises.
Representative Ehlers moved to introduce RS 32206 with an amendment to add a definition: on page 1, line 21, after the word "aircraft" insert "vessel as defined in 67-7003," language Ehlers read into the record: "Add the following, vessel as defined in 67Dash7003, comma. Don't forget the comma." The committee voted to introduce the RS with that amendment; the chair announced the motion carried.
The transcript shows the RS was introduced and amended; no committee fiscal note or effective dates were provided in the meeting. The chair announced the committee would meet the next morning at 9:30 a.m.
