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Conferees weigh sales-tax apportionment freeze, meat-processing change and exemption-certificate reform
Summary
Members discussed folding local sales-tax authority bills into a single vehicle, potential inclusion of a meat-processing sales-tax reform, and proposed removal of a sales-tax exemption certificate requirement for a specific exemption. Retailers and processors raised concerns about audit burdens if certificates are eliminated.
Conferees discussed adding local sales-tax authorities and related sales-tax reforms into a single bill, considering proposals to freeze sales-tax apportionment for certain counties and to change rules for sales-tax exemption certificates for a narrowly defined exemption.
One conferee suggested putting local sales-tax authorities (Finney County, Pawnee County, Jackson County, Seward County and related bills) into a single bill (discussed as 02/1975). Members also discussed whether Senate Bill 33 (meat-processing sales-tax form changes) could be folded into that vehicle. A conferee supporting the meat-processing change said retailers had raised concerns that removing the exemption form entirely might shift the audit burden to retailers if audited.
Amelia, a staff member, summarized the bill text that would remove the seller's obligation to receive and maintain a completed exemption certificate for that exemption and would state that the seller shall be relieved from collecting and remitting the tax if the seller, in the ordinary course of business, believes the service qualifies for the exemption. Amelia noted the purchaser would remain liable for improperly claimed exemptions.
Lawmakers agreed to study the retailer and processor concerns and to follow up with affected industry representatives before finalizing language. No formal additions to bills were adopted at the meeting.
