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Bill Summary · SB 1130

Summary of SB 1130: Relating to the General Excise Tax

Bill Number: SB 1130
Introduced: January 17, 2025
Current Status: Reported from PSM (Stand. Com. Rep. No. 79) with recommendation of passage on Second Reading, as amended (SD 1), and referred to WAM.

Purpose and Intent

SB 1130 aims to amend the General Excise Tax (GET) regulations in the context of disaster recovery efforts. Specifically, the bill seeks to provide exemptions for construction rebuilding materials used in federally declared disaster areas. The intent is to facilitate and expedite the reconstruction process following disasters by reducing the financial burden associated with the GET on essential rebuilding materials.

Key Provisions

  • Exemption from GET: The bill proposes an exemption from the General Excise Tax for certain construction materials that are utilized in the rebuilding efforts within federally declared disaster areas.

  • Third Party Certification: The legislation includes provisions for the issuance of third-party certifications, which would likely streamline the process for verifying the use of materials eligible for the tax exemption.

  • Focus on Disaster Recovery: The bill specifically targets areas affected by federally declared disasters, ensuring that the benefits of the tax exemption are directed where they are most needed.

Affected Parties

  • Construction Industry: Contractors and builders working in federally declared disaster areas will benefit from reduced costs associated with the GET on rebuilding materials.

  • Local Governments and Communities: Communities recovering from disasters will see a more efficient rebuilding process, potentially leading to quicker restoration of infrastructure and services.

  • Tax Revenue Considerations: The bill may impact state tax revenues due to the proposed exemptions, necessitating careful consideration of fiscal implications.

Legislative Timeline

  • January 17, 2025: Bill introduced.
  • January 21, 2025: Passed First Reading.
  • January 23, 2025: Referred to the committees on PSM and WAM.
  • January 24, 2025: Public hearing scheduled for January 29, 2025.
  • January 29, 2025: Committee on PSM recommended that the measure be passed with amendments, resulting in a unanimous vote.
  • February 7, 2025: The report was adopted, and the bill passed Second Reading as amended (SD 1), subsequently referred to WAM.

Conclusion

SB 1130 represents a significant legislative effort to support disaster recovery through financial relief in the form of tax exemptions for construction materials. By facilitating quicker rebuilding efforts in affected areas, the bill aims to enhance community resilience and recovery following federally declared disasters. The ongoing legislative process will determine the final form and impact of this bill.

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

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