HB0703 Leake, Sam

P R E F I L E D

HB 703 -- Local Sales Tax for Economic Development

This bill authorizes municipalities and counties to impose a sales tax on retail sales made in the municipalities and counties. An additional tax on retail sales of up to 1% for municipalities and up to 0.5% for counties may be imposed, if approved by the voters at a municipal, county or state general, primary or special election.

All revenues from the sales tax are to be deposited into a special state trust fund, the Local Economic Development Sales Tax Trust Fund, to be redistributed to the municipalities and counties. These revenues may be used only for economic development purposes within the municipality or county imposing the tax, except that 1% of the revenues collected will be deposited in the General Revenue Fund, to cover the costs of collection and payment of premiums for the surety bonds required by current law.

Any sales tax imposed under this provision is authorized for no more than five years.