H0589: Sales Tax Exemptions For Public Works

Legislative Summary

Revises provisions specifying instances when sales to contractors are not exempt from sales & use tax; prohibits certain nonprofit entities that used sales tax exemption illegally from transferring liability; requires Department of Revenue to adopt rules prohibiting certain parties who receive sales tax exemption from assigning responsibility related to tangible personal property to other parties; requires department to establish by rule process to suspend public entity's ability to use tax exemption if certain conditions are met; revises provision specifying when taxes that are imposed are considered state funds.