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Tuesday, January 29, 2019

New Finance-Related Bills Introduced Last Week Could Benefit Municipalities


HB 824 was introduced last week to amend the Non-Home Rule Municipal Sales Tax Act. If passed, it would eliminate the referendum requirement for non-home rule municipalities who want to adopt the non-home rule municipal sales tax. This would allow non-home rule municipalities to adopt and impose a sales tax without having to bring the question to the voters similar to the authority that home rule municipalities have under state law. The amendment would not change the maximum rate of 1% or the requirement that the tax be imposed in 1/4% increments.

HB 825, if passed would expressly authorize municipalities to impose storm water utility fees or charges to offset the cost of owning, maintaining, and improving local storm water infrastructure.

HB 826, if passed, would create the "Municipal Gas Use Tax Law" that would authorize municipalities to impose a tax on the purchase price of out-of-state gas that is used in the municipality. The bill contains various registration requirements that require purchasers and suppliers to self-report these out-of-state purchases and submit returns and pay the tax on the purchase.

We will keep you posted on the progress of these bills.

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