SB 849

This bill changes references to industry classifications set forth in the

Standard

Industrial Classification

manual to those in the

North American Industry

Classification System

, 2012 edition, and any subsequent edition. The SIC manual

was last updated in 1987. Both the SIC manual and the NAICS are published by the

federal government.

Industry classifications are used under current law for the following purposes:

1. To assess manufacturing property for property tax purposes. Taxpayers who

own property assessed as manufacturing are also eligible to claim certain income tax

credits and sales and use tax exemptions.

2. To determine whether a county or municipality may qualify as a premier

resort area and impose the premier resort area sales tax on sellers in the area based

on their industry classifications.

3. To determine eligibility for the property tax exemption for rented personal

property.

4. To report the classification of each place of business in this state when

obtaining a business tax registration certificate.

5. To administer the clean water fund program.

6. To determine which facilities must comply with toxic chemical release form

requirements under federal law and submit copies of such forms to the Department

of Natural Resources.

7. To determine the activities in this state in which a nonresident may hold an

interest. Current law allows a nonresident to hold an interest in activities classified

as manufacturing or mercantile.

This bill also requires all state agencies to use the

North American Industry

Classification System

in order to determine the industrial classification of any

property, entity, or activity included in any program administered by the agencies.

Finally, the bill requires taxation districts to assess property at full value at

least once in every eight-year period and requires the Department of Revenue to

assess manufacturing property at full value at least once in every eight-year period.

Current law requires such assessments at least once in every five-year period.