FISCAL NOTE

House Bill 162 as passed the House of Representatives provides a lease tax exemption on the gross proceeds of motor vehicle lease transactions with a duration of at least 180 days with the federal government, or any state, county, or municipal entity within the state, including a public school board or individual public school. The bill also removes the current prohibition of passing lease tax of tangible personal property on to the state, a municipality, or a county within the state.

This bill would decrease receipts to the State General Fund by an estimated minimum of $50,000 annually, based on state government lease expenses for 2019 and 2020. However, these lease transactions may include leases with a duration of less than 180 days. This figure does not include receipts associated with leases with non-governmental sales tax exempt entities. This bill would also reduce receipts to local governments that levy a local lease tax by an undetermined amount.