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Bill

A 1381

Relates to the imposition of sales taxes on goods or services purchased from businesses which employ 20 or less persons

2025 Regular Session Introduced by Will Barclay and 4 co-sponsors

Bill A 1381 imposes sales taxes on goods and services from small businesses (20 or fewer employees), potentially raising costs for consumers and generating state revenue.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 1381

Summary of Bill A 1381

Bill Information

  • Bill Number: A 1381
  • Title: Relates to the imposition of sales taxes on goods or services purchased from businesses which employ 20 or less persons
  • Status: Referred to Ways and Means
  • Introduced: January 09, 2025
  • Classification: Bill

Purpose and Intent

Bill A 1381 aims to modify the current sales tax framework by imposing sales taxes specifically on goods and services purchased from small businesses that employ 20 or fewer individuals. The intent behind this legislation is to address the economic dynamics of small businesses and potentially generate additional revenue for the state.

Key Provisions

  • Sales Tax Imposition: The bill proposes that sales taxes will be applied to transactions involving goods or services from qualifying small businesses (those with 20 or fewer employees).
  • Definition of Small Business: The bill defines a small business as any entity that employs 20 or fewer persons, which aligns with certain federal definitions of small businesses.
  • Revenue Allocation: While the bill does not specify how the revenue generated from these taxes will be allocated, it is expected that the funds could support state programs or initiatives aimed at small business development or community services.

Who Would Be Affected

  • Small Businesses: The primary impact will be on small businesses that fall under the employment threshold. These businesses may face increased operational costs due to the imposition of sales taxes on their sales.
  • Consumers: Consumers purchasing goods or services from these small businesses may see an increase in prices due to the added sales tax, potentially affecting their purchasing decisions.
  • State Revenue: The state may benefit from increased tax revenue, which could be used to fund various programs or initiatives.

Procedural Aspects

  • Current Status: As of January 09, 2025, the bill has been referred to the Ways and Means Committee for further consideration. This is a critical step in the legislative process, as the committee will review the bill's provisions and implications before it can proceed to a vote.
  • Related Bills: The bill has connections to several prior-session bills (A 7204, A 2318, A 2259) and has a companion bill in the Senate (S 1115), indicating ongoing legislative interest in this area.

Conclusion

Bill A 1381 seeks to impose sales taxes on transactions involving small businesses, which could have significant implications for both the businesses and consumers involved. As it moves through the legislative process, stakeholders will be watching closely to understand its potential impact on the economy and small business operations.

Compiled from official sources — confirm details with the bill’s official record.

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