2011 Session

Budget Amendments - HB1500 (Conference Report)

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Raise AST Threshold to $5.4 million (language only)

Item 3-5.08 #1c

Item 3-5.08 #1c

Adjustments and Modifications to Tax Collections
Accelerated Sales Tax

Page 469, line 25, after "G.", insert:
"Beginning with the tax payment that would be remitted on or before June 25, 2011, if the payment is made by other than electronic transfer, and by June 30, 2011, if payments are made by electronic fund transfer, the provisions of § 3-5.08 of Chapter 874, 2010 Acts of Assembly, shall apply only to those dealers or permit holders with taxable sales and purchases of $5,400,000 or greater for the 12-month period beginning July 1 and ending June 30 of the immediately preceding calendar year."

(This amendment raises the threshold for vendors subject to accelerated sales tax (AST) payments from $1,000,000 to $5,400,000, eliminating 80 percent of retailers subject to the AST and leaving only 1,736 retailers under AST. This results in a one-time revenue loss estimated at $45.7 million.)