PART C

Sec. C-1. Sales tax and use tax reduction. Any revenues that result from the repeal of the sales and use tax exemptions in Part A that are not necessary for the funding of primary and secondary education in Part B must be used to reduce the sales tax and use tax rates. The Governor shall submit legislation to the Second Regular Session of the 119th Legislature to implement the rate changes.

SUMMARY

Part A of this bill repeals all the sales and use tax exemptions.

Part B of the bill, using additional revenue available by the repeal of the exemptions in Part A, provides additional state funding for primary and secondary education and a new method to distribute this total school subsidy amount. Part B also requires the Department of Education to submit the legislation necessary to implement the proposed new subsidy distribution to the next session of the Legislature.

Part C of this bill requires that the revenue from the repeal of sales and use tax exemptions that is not required for education funding must be used to reduce the sales and use tax rates.