As many cities are aware, implementing HB 1406, passed in 2019, has been challenging due to some confusing language and unintended consequences.
HB 2797 intends to clear up that confusion and would also extend the time for a city to pass a qualifying local tax. AWC, alongside a coalition of partners, supported amendments that the House made on the floor, and that is the version that just passed out of the Senate committee.
The bill would address:
- The timing issue if a city adopts the ordinance before a county;
- Extending the timeline to adopt a qualifying local tax until December 31, 2021;
- Cities without a qualifying local tax in a nonparticipating county; and
- Clarifying language on how the funds may be spent.
Cities certainly appreciate that the Legislature passed HB 1406 last session and we also support these proposed changes. Contact your legislators today to get this important piece of legislation across the finish line!