AB 1532 Passes: Sales Tax Relief on Fixed Price Contracts

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- from Kevin Pedrotti, Legislative Advocate for the Golden SDtate Builders Exchanges

AB 1523 recently passed unanimously by the Assembly Revenue and Taxation Committee this afternoon. However this is only a first step.

AB 1523 relieves parties who entered into fixed price contracts prior to the increased sales tax on April 1.  Each step of the process will get a bit tougher. Next week the bill will be in the Assembly Appropriations Committee where it will be sent to suspense to be considered with all other spending or tax levy bills. So far, the impact of AB 1523 has not been able to be scored; however, the bill does cause a loss of undetermined revenue to the state even though it wasn’t considered as revenue when the increased sales tax was passed in February.

Thanks to those Builders Exchanges and contractors that sent letters of support.