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Senate adds 10-year sunset to manufacturing sales-tax exemption bill
Summary
Senators adopted an amendment reinstating a 10-year sunset on a manufacturing sales-and-use tax exemption (House Bill 11) after proponents said the change would provide industry certainty and opponents warned about inconsistent tax treatment.
Senators on Tuesday adopted a third-reading amendment to House Bill 11 that reinserts a 10-year sunset on a manufacturing sales-and-use tax exemption.
Senator Cole explained the amendment on third reading as a compromise that would extend the exemption through 2037, giving industry more certainty for investments. “This moves the sunset out to, 2037,” Cole said during explanation. The amendment was adopted and the bill later passed the Senate on third reading; the roll call recorded 27 ayes and 4 no.
Opponents argued the sunset would be unique among Department of Revenue exemptions and urged consistent treatment of tax exemptions. Senator Hyde said the exemption would be the only one in the department with a sunset and argued to “keep them consistent.” Supporters said the exemption helps manufacturing and other industries that qualify under the statute; Senator Case said the exemption covers a range of businesses beyond large facilities and pledged to refine statutory language in future sessions.
The sponsor described the amendment as industry-supported compromise language. After the amendment vote, the Senate completed third reading and passed the bill, sending House Bill 11 to further legislative steps.
