Bill
S 6742
Exempts telephone answering services from sales and use taxes, reducing state/local tax revenue and possibly lowering costs for providers and customers.
Overview
- Purpose: The bill proposes eliminating the state's sales and compensating use taxes on telephone answering services.
- Status: Referred to the Budget and Revenue committee (introduced March 21, 2025).
Key Provisions
- Tax exemption: Eliminates the sales tax and the compensating use tax for charges related to telephone answering services.
- Scope: The exemption would apply to telephone answering services currently subject to these taxes under existing law (text of the bill would specify exact definitions and scope in the tax code).
- Effective date: No specific effective date is provided in the available materials.
Impact and Effects
- Fiscal impact: The change would reduce state (and potentially local) tax revenue by the amount currently collected on telephone answering services. The bill’s assignment to the Budget and Revenue committee indicates a focus on the fiscal implications.
- Market impact: Telephone answering service providers would no longer collect or remit sales or use taxes on these services, potentially reducing prices for consumers or altering pricing structures.
- Consumers: End users of telephone answering services could see lower total costs if the benefit is passed through by providers.
- Government: Revenue authority would lose tax receipts related to these services, with potential implications for budget planning and program funding.
Who Could Be Affected
- Primary: Providers of telephone answering services and their customers.
- Secondary: Government revenue streams at the state (and local) level, and any state agencies involved in tax administration and budgeting.
Procedural Timeline and Next Steps
- Introduction: March 21, 2025.
- Committee action: Referred to Budget and Revenue (the current stage).
- Next steps (if advanced): The bill would typically proceed to committee hearings, potential amendments, and votes in the Senate, followed by consideration in the lower chamber (and potential reconciliation) as part of the normal legislative process. Timelines depend on committee priorities and budget-related scheduling.
Sponsors
- Primary sponsor: Anthony H. Palumbo
- Co-sponsor: April Baskin
Notes
- This summary reflects the publicly available information: bill number, title, sponsor details, status, and stated purpose. The full text would provide precise definitions, any phased-in provisions, transitional rules, and exact fiscal estimates.
Compiled from official sources — confirm details with the bill’s official record.
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