HB 1079/SB 718 - Sales Tax Changes

HB 1079/SB 718 – Various Sales Tax Changes

House Primary Sponsors: Rep. Julia Howard (R-Davie), Rep. Stephen Ross (R-Alamance), Rep. Mitchell Setzer (R-Catawba), Rep. John Szoka (R-Cumberland)

Senate Primary Sponsors: Sen. Paul Newton (R-Cabarrus)

Summary

The bill contains three parts:

• Relief to auctioneers and estate sale companies
•  Expands scope of sales and use tax exemption for equipment purchased by a  large fulfillment facility
• Clarifies sales tax on digital property
  • Educational service by certain institutions whether live or recorded is not a taxable event
  • Homeschool exemptions for sales of digital and audio works
  • Pre-recorded or on demand webinars would be taxable, live/real time would remain non taxable
  • History

House

• Filed 5/14/2020
• Passed Finance Committee 5/19/2020
• Passed Rules Committee 5/19/2020
• Passed House 5/19/2020
• Passed Senate Finance 5/20/2020
• Passed Senate Rules 5/21/2020
• Passed Senate 48-0 with an amendment on 5/26/2020
• House concurred with the new version of the bill that included an amendment on 5/28/2020
• Bill presented to the Governor on 6/2/2020
• Signed by the Governor on 6/8/2020 – now law

Senate

• Filed 5/14/2020