Establish a Local Option for Sales Tax

Last updated: Apr 12, 2019

Details about this bill
Category: Taxation
Status: Defeated
Sponsor: Representative Lori Gramlich, House 13
Session: 129
Bill #: LD 1110




This bill allows a municipality to impose a local option sales tax if approved by referendum of the voters in that municipality. The referendum question must identify the rate of the local option sales tax, the categories of taxable items the local option sales tax will apply to and the purposes for which the revenue will be used. The local option sales tax would be collected and administered by the State in the same manner as the sales and use tax. Revenue from the local option sales tax is distributed to the municipality imposing the local option sales tax. Revenue received by a municipality may not be used to reduce or eliminate funding otherwise due the municipality under other provisions of law.