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Committee approves amendment and advances bill to freeze countywide sales‑tax apportionment while formula is revised
Summary
House Bill 2,377, which would change how countywide retailer sales tax is apportioned between counties and cities, was amended to freeze current apportionment from July 1, 2025, through Dec. 31, 2026; the committee approved the amendment and later passed the bill favorably as amended by voice vote.
The Committee on Taxation approved an amendment to House Bill 2,377 that temporarily freezes the distribution formula for countywide retailer sales tax and then voted the bill favorably as amended.
House Bill 2,377 would change the method used to apportion countywide retailer sales tax revenue between counties and cities. The reviser explained the underlying bill shifts the apportionment basis from the current method tied to tangible property tax levies to a method based on assessed valuations. That change prompted questions from committee members and local governments about unintended consequences for taxing entities that do not lower…
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