SB 863

Under current law, a county may impose a sales and use tax at the rate of 0.5

percent of the sales price of tangible personal property, goods, and services sold or

used in the county. This bill allows a county, with the approval of the county electors

at a referendum, to increase the tax rate in 0.1 percent increments, as long as the

overall rate does not exceed 1 percent.

The bill also allows a municipality to impose a sales and use tax at the rate of

0.1, 0.2, 0.3, 0.4, or 0.5 percent of the sales price of tangible personal property, goods,

and services sold or used in the municipality if the municipality adopts an ordinance

to impose the tax and the ordinance is approved by the electors of the municipality

at a referendum held at a spring or general election. In addition, the bill allows a

municipality that has adopted such an ordinance to subsequently increase the rate

in 0.1 percent increments as long as the increase is approved by the electors of the

municipality at a referendum held at a spring or general election and as long as the

overall rate does not exceed 0.5 percent.