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HB 2161

Relating to consumers sales and service tax and use tax exemption for certain goods to be incorporated into a qualified, new or expanded warehouse or distribution facility

2025 Regular Session Introduced by Vernon Criss and 2 co-sponsors

HB 2161 exempts certain goods from sales and service tax for new or expanded warehouses, boosting investment and job creation in the logistics sector.

To House Finance
#taxation
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Bill Summary · HB 2161

Summary of HB 2161

Bill Number: HB 2161
Title: Relating to consumers sales and service tax and use tax exemption for certain goods to be incorporated into a qualified, new or expanded warehouse or distribution facility
Status: To House Finance
Introduced: January 29, 2025
Classification: Bill
Subject: Taxation

Purpose and Intent

HB 2161 aims to provide a sales and service tax exemption for specific goods that are intended to be incorporated into new or expanded warehouse or distribution facilities. This legislation is designed to stimulate economic growth by encouraging investment in infrastructure related to logistics and distribution.

Key Provisions

  • Tax Exemption: The bill proposes an exemption from consumers sales and service tax and use tax for certain goods. These goods must be directly incorporated into qualified warehouse or distribution facilities.

  • Qualified Facilities: The bill specifies that the exemption applies to new or expanded facilities that meet certain criteria, although the exact criteria are not detailed in the provided text.

  • Economic Development: By reducing the tax burden on businesses investing in warehouse and distribution infrastructure, the bill seeks to promote job creation and economic development within the state.

Affected Parties

  • Businesses: Companies involved in the construction or expansion of warehouse and distribution facilities will benefit from the tax exemptions, potentially lowering their operational costs.

  • State Revenue: The bill may impact state tax revenue due to the exemptions provided, which could influence budget allocations and funding for public services.

Procedural Aspects

  • Legislative Timeline:
    • January 29, 2025: Bill filed by Rep. Tony M. McCombie.
    • February 4, 2025: First reading and referred to the Rules Committee.
    • March 4, 2025: Assigned to the Executive Committee.
    • March 12, 2025: Passed out of the Executive Committee with a "Do Pass" recommendation.
    • March 27, 2025: Held on the Calendar for Second Reading.
    • April 11, 2025: Third Reading Deadline extended to May 31, 2025.
    • May 31, 2025: Re-referred to the Rules Committee.

Conclusion

HB 2161 represents a strategic effort to enhance the state's logistics and distribution capabilities through tax incentives. By exempting certain goods from sales and service tax, the bill aims to foster economic growth and development in the warehouse and distribution sector. Stakeholders, particularly businesses in this industry, should monitor the bill's progress as it moves through the legislative process.

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

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