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Senate debates taxing taxi and limo fares to offset education property tax; amendment and close floor action push bill to third reading
Summary
Senate Bill 205, a proposal to repeal certain sales-tax exemptions for intrastate transportation services (including limousines, taxis and hired buses) to replace property-tax increases for school building funds, drew extended debate over fairness, fiscal impact (~$480,000), and burden on drivers; an amendment regarding taxis/limousines was adopted and the bill was placed on third reading with a divided vote.
Senate Bill 205, introduced by Senator Lyle Hilliard, would repeal several sales-tax exemptions that have historically shielded certain intrastate transportation services — notably limousine, taxi-cab and hired bus services — with the aim of generating revenue that could reduce a planned $4.1 million property-tax increase for school building funds.
Hilliard told the Senate the bill came from a task force and revenue study and said the bill would raise "about $480,000, not quite a half a million dollars" in the first year. He framed the measure as part of a multi-year effort to treat…
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