REDUCE SALES TAX FROM 6.25 PERCENT TO 5 PERCENT

By Bob Katzen

The Revenue Committee’s hearing also included a bill reducing the sales tax from 6.25 percent to 5 percent

Supporters say this increased sales tax is hurting consumers and retail operations, especially those on the state’s borders.

Opponents say the state cannot afford the estimated $1.25 billion loss of revenue and predicted that this cut would result in reductions to local aid, education, health care and human service programs.

NEW EXEMPTIONS FROM THE SALES TAX – Other bills on the Revenue Committee’s agenda include exempting several purchases from the state’s 6.25 percent sales tax including gun safes and trigger locks (S 1680); residential security systems (S 1658); all Energy Star products and hybrid and electric motor vehicles purchased on Earth Day (H 2571); and artisan products sold in a cultural district (H 2460).

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