The House Committee on Appropriations on April 28 approved House Bill 578 as amended. The bill is primarily a technical cleanup of prior changes from a November special session but also contains an amendment that would accelerate a planned reduction in the state sales tax rate — contingent on passage of an Article VII constitutional amendment on the ballot.

Chairwoman Emerson said much of the bill corrects drafting inconsistencies, clarifies exemptions (notably ticketing for school events and similar questions raised after the special session), and creates local revenue funds for telecom-related collections so the monies can be deposited correctly. Committee staff explained the amendment set creates a local revenue fund into which the additional 5% tax on telecommunication, cable and certain satellite services will be deposited, and performs other technical conforming changes.

The more substantive change in the amendment accelerates a previously scheduled reduction in the state sales tax rate to 4.75 percent earlier than planned but makes that reduction contingent on passage of a separate constitutional amendment (House Bill 472). Committee members asked whether the amendment changes fiscal expectations. Debbie Vivian of the Legislative Fiscal Office said she had not yet seen all amendments and could not provide a revised fiscal estimate immediately; later testimony from Department of Revenue staff indicated two local exemptions previously optional and now mandatory could cost about $6,000,000 (one item cited was a radiation therapy exemption) and other local impacts were smaller.

Vice Chairman Hughes moved the bill favorable as amended and the committee approved the motion by voice vote. Staff said other parts of the bill take effect on signature, while the sales-tax rate reduction would take effect only if the Article VII amendment passes in the spring ballot.