I have written several times about the speed at which bills were being passed in this session of the General Assembly. Well, that's about to change. It's going to get more hectic this week as the General Assembly approaches the crossover date. What is crossover? The House and Senate rules say that bills that don’t raise or spend
money or propose amendments to the state constitution must pass either
the House or Senate by Thursday to be considered during the session. So hang on to you hats and watch the legislation very closely as this week will be full of fun and games as legislators make sure their pet legislation survives crossover and is heard during this session.
No word on when Senator Berger's tax reform proposals are going to see the light of day in the form of a bill. The details keep coming out in dribbles so stay alert for additional information.
Here's and interesting bill that has hit the floor. Rep. Marcus Brandon, a High Point Democrat has introduced H.994, a bill that allows parents to spend taxpayer money on K-12 private school tuition. As filed, the bill would offer vouchers worth $4,200 a year: however, there have been some revisions that will have 50 percent of the money each year reserved for children from
families at 185 percent of the federal poverty level or below. That’s
the level at which kids in a family would qualify for free or reduced
lunch in public schools. Anyone making over $45,000 per year would not be eligible. It is on the calendar of the House Education Committee for Tuesday.
Another bill, H.274 “Taxpayer Bill of Rights,” aka TABOR, which would have voters decide
whether to limit government spending in the state Constitution is scheduled to be heard in the Finance committee this week. The measure would establish a General Fund spending limit based on the
previous year’s limit increased by a formula that takes into account
inflation and population increases. The governor and General Assembly
then could not spend more than that limit without a two-thirds vote of
the Legislature. There is some concern that passage of this bill would hurt the State's credit rating.
There are a whole hosts of pending legislation that you need to watch. I'll try to keep you as up to date as possible. Check everyday for further information.
Monday, May 13, 2013
Tuesday, May 7, 2013
Sales Tax Collections
I have been focusing on legislation at the state level in the past few weeks but yesterday a bill (S.336) in the U.S. Congress caught my attention. The Senate passed a bill (Marketplace Fairness Act of 2013) that empowers states to collect sales taxes from Internet purchases. This has long been a sore spot for local business that compete against large retailers that utilize the internet to for their sales platform. Amazon and Ebay are two of the larger ones. However, any business that has an on-line store avoids collecting sales tax unless they have a "presence" within the state.
The bill passed 69 to 27 with by-partisan support but faces an uphill battle in the House. Mnay oppoents in the House see this as a tax increase. The proponents say it's just collecting taxes that are already owed and provides a method for collecting those taxes. Many governors - Republicans and Democrats - have been lobbying the federal government for years for the authority to collect sales taxes from online sales. States lost a total of $23 billion last year because they couldn't collect taxes on out-of-state sales, according to a study done for the National Conference of State Legislatures.
Supporters say the bill makes it relatively easy for Internet retailers to comply. States must provide free computer software to help retailers calculate sales taxes, based on where shoppers live. States must also establish a single entity to receive Internet sales tax revenue, so retailers don't have to send it to individual counties or cities.
Opponents worry the bill would give states too much power to reach across state lines to enforce their tax laws. States could audit out-of-state businesses, impose liens on their property and, ultimately, sue them in state court.
This bill has far reaching consequences. Watch this one closely.
The bill passed 69 to 27 with by-partisan support but faces an uphill battle in the House. Mnay oppoents in the House see this as a tax increase. The proponents say it's just collecting taxes that are already owed and provides a method for collecting those taxes. Many governors - Republicans and Democrats - have been lobbying the federal government for years for the authority to collect sales taxes from online sales. States lost a total of $23 billion last year because they couldn't collect taxes on out-of-state sales, according to a study done for the National Conference of State Legislatures.
Supporters say the bill makes it relatively easy for Internet retailers to comply. States must provide free computer software to help retailers calculate sales taxes, based on where shoppers live. States must also establish a single entity to receive Internet sales tax revenue, so retailers don't have to send it to individual counties or cities.
Opponents worry the bill would give states too much power to reach across state lines to enforce their tax laws. States could audit out-of-state businesses, impose liens on their property and, ultimately, sue them in state court.
This bill has far reaching consequences. Watch this one closely.
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