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Bill Summary · SB 99

Summary of SB 99: Revise Unrelated Business Taxable Income

Bill Overview

Bill Number: SB 99
Title: Revise unrelated business taxable income to include certain rental and accommodations income
Status: Died in Standing Committee
Introduced: February 14, 2025
Classification: Bill
Subject Areas: Agriculture, Taxation (Corporations, Revenue)

Purpose and Intent

The primary aim of SB 99 was to amend the definition of unrelated business taxable income (UBTI) to encompass specific types of rental and accommodations income. This change was intended to ensure that certain income streams generated by organizations, particularly those involved in agriculture and livestock, would be subject to taxation, thereby increasing state revenue.

Key Provisions

  • Inclusion of Rental Income: The bill proposed to include income derived from rental activities and accommodations as part of UBTI. This would affect organizations that generate income from leasing property or providing lodging.
  • Taxation Framework: By revising the UBTI definition, the bill aimed to create a clearer framework for taxation on these income sources, aligning them with other taxable activities.

Affected Parties

  • Agricultural Organizations: The bill primarily targeted agricultural entities that may have been previously exempt from taxation on certain rental incomes.
  • Non-Profit Organizations: Non-profits that engage in rental activities could also be impacted, as the bill would subject their rental income to taxation if it fell under the revised UBTI definition.

Legislative Timeline

  • January 6, 2025: SB 99 was introduced in the Senate.
  • January 16, 2025: A hearing was held in the Senate's Local Government Committee.
  • January 28, 2025: The bill passed the committee with amendments.
  • January 31, 2025: The bill passed the Senate on its third reading and was transmitted to the House.
  • February 5, 2025: A hearing was conducted in the House's Taxation Committee.
  • February 18, 2025: The bill was tabled in the House committee.
  • May 23, 2025: The bill ultimately died in the Standing Committee, meaning it did not progress to a vote.

Conclusion

SB 99 sought to revise the taxation landscape for certain rental and accommodations income within the agricultural sector. Despite its introduction and initial support, the bill did not advance through the legislative process and ultimately did not become law. The implications of this bill would have been significant for organizations involved in agriculture and non-profit sectors, as it aimed to broaden the tax base by including previously exempt income sources.

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

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