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HB 1037

Sales tax; exempt certain sales of tangible personal property and services to churches.

2025 Regular Session Introduced by Dan Eubanks

HB 1037 would exempt churches from state sales tax on property and service purchases, reducing revenue and privileging religious organizations above secular nonprofits.

Died In Committee
#waysandmeans
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WeVote Research Nonpartisan
Bill Summary · HB 1037

Legislative bill overview

HB 1037 would exempt churches from paying sales tax on purchases of tangible personal property and services. The bill died in committee on February 26, 2025, after being referred to the Ways and Means Committee in January.

Why is this important

This proposal directly affects state revenue and the competitive position of religious versus non-religious organizations. Churches already receive certain tax exemptions; this bill would expand those exemptions to include sales tax on goods and services they purchase, potentially reducing state tax revenue while benefiting religious institutions specifically.

Potential points of contention

  • Revenue impact: Expanding tax exemptions reduces state tax collection, requiring either budget cuts or tax increases elsewhere
  • Separation of church and state: Direct tax benefits to religious institutions (versus secular nonprofits) raises constitutional and fairness questions
  • Equity concerns: Secular nonprofits and small businesses pay full sales tax on purchases, creating unequal treatment
  • Scope ambiguity: The bill's language on "certain" purchases could be interpreted broadly or narrowly, creating implementation challenges
  • Existing exemptions: Churches already have property tax and income tax exemptions; expansion consolidates significant public subsidy to religious organizations

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

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