SB 5997, one of the bills related to revenues for the state operating budget, changes how the state administers the nonresident exemption from retail sales tax. The bill replaces the exemption granted at the time of sale with a rebate process. The Department of Revenue has issued guidance on the new requirement for retailers to begin collecting sales taxes from nonresidents on July 1, 2019.

Beginning January 1, 2020, qualified nonresidents, defined as residents of another state, territory, or Canadian province that imposes a sales tax or similar tax of less than 3 percent, will be able to request refunds of sales taxes totaling $25 or more for the prior year.