Business leaders are distressed about the following bills currently being considered in the Senate.
House Bill 1189: Will tax direct mail advertising materials starting March 1. Local governments will still be exempt from the sales tax. The tax will be paid by anyone providing direct mail advertising.
House Bill 1190: Will tax fields used for industrial purposes starting March 1. The bill taxes electricity, coal, coke, fuel oil, steam, nuclear fuel for gas used in processing, manufacturing, mining, refining, irrigation, building construction and all industrial uses.
At least 40 percent of the money from this tax will be used to pay for preschool through 12th grade education.
House Bill 1191: Will tax candy and soda. Candy is defined as “sugar, honey or other natural or artificial sweeteners in combination with chocolate, fruit, nuts or other ingredients in the form of bars, drops or pieces.” Candy that includes flour will not be taxed. Soft drinks are nonalcoholic beverages that contain natural or artificial sweeteners. Milk or soy products, as well as fruit and vegetable juices, are exempt. The tax is slated to begin May 1. Candy in vending machines is included in the tax.
House Bill 1192: Will tax software downloaded by businesses – including upgrades and modifications, but does not include maintenance.
House Bill 1195: Will tax agricultural production – any product used in caring for livestock, semen for agricultural and ranching purposes, and pesticides used in the production of agricultural and livestock products.
House Bill 1199: Limits the amount of net operating losses a business can carry forward on state taxes the following year. The limit is set at $250,000 for the next three years.