Under current law, sales tax on capital equipment purchases must be paid upfront and then refunded. This bill adds language allowing a capital equipment sales tax exemption at the time of purchase for small businesses.
As defined under current law, a “small business” is a for-profit entity that:
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is not an affiliate or subsidiary of a business dominant in its field of operation;
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has 20 or fewer full-time employees; and
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has not had more than the equivalent of $1,000,000 in annual gross revenues or, if the business is a technical or professional service, has not had more than the equivalent of $2,500,000 in annual gross revenues in the preceding fiscal year.
This bill is effective for sales and purchases made after June 30, 2012.
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