AB 242

Sales and use tax holiday

Under this bill, beginning on June 1, 2021, and ending on August 31, 2021, the

sale of tangible personal property and taxable services sold at any licensed brewpub

in this state or at any business that has as its primary business activity in this state

an activity classified under the North American Industry Classification System as

a motion picture theater, including a drive-in theater; a tavern, restaurant, or other

food service establishment; or an amusement park or arcade is exempt from the state

sales and use tax. The exemption also applies to the county sales and use tax, the

sales tax imposed by a premier resort area, and the food and beverage tax imposed

by a local exposition district. Under the bill, if a business did not classify itself on

or before March 1, 2021, as an establishment that would qualify to offer the

exemption, the business may apply to the Department of Revenue to be classified as

one of those establishments for purposes of offering the exemption.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.