H1030 - 2016 Appropriations Act. (SL 2016-94)

Overview: Sec. 38.5 of S.L. 2016-94, as amended by Part XI of S.L. 2016-123, does the following:

• Provides a grace period for retailers who provide repair, maintenance, and installation services. This part of the section became effective July 14, 2016, and the relief provided for related transactions applies retroactively to January 1, 2015.
• Amends the sales tax on repair, maintenance, and installation services to treat similar transactions the same and to identify taxable transactions more clearly. In treating similar transactions the same, the act expands the sales tax base to include repair and maintenance of real property. This part of the section becomes effective January 1, 2017.
• Allows a use tax exemption equal to the amount of the installation charges and sales price of, or gross receipts derived from, the repair, maintenance, and installation services that exceed $25,000 for a boat, aircraft, or qualified jet engine. This part of the section became effective July 1, 2016.
• Repeals the $17.6 million State contribution to local sales and use tax revenue distributed to counties and cities, effective for fiscal years beginning on or after July 1, 2016. The contribution would have become effective July 1, 2016; thus, the repeal nullifies the contribution before it became effective.
• Allows a sales tax exemption for products made of more than 75% recycled material by weight if the products are sold for use in an accepted wastewater dispersal system. The exemption becomes effective October 1, 2016.