Department of Finance and Administration
Legislative Impact Statement
Bill: HB1089
Bill Subtitle: TO EXEMPT MORGAN NICK FOUNDATION FROM SALES AND USE TAX.
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Basic Change :
Sponsors: Rep. C. Fite and Sen. J. Petty
HB1089 creates a new section, § 26-52-455, to provide a sales and use tax exemption for sales to the
Morgan Nick Foundation, Inc. of Alma. Sales to the Morgan Nick Foundation would be exempt from
gross receipts taxes levied under §§ 26-52-301, -302, and 26-63-402, compensating use taxes levied
under §§ 26-53-106 and -107, and all city and county sales and use taxes.
Revenue Impact :
FY2024
Total Approximate State Sales and Use Tax Loss $ - 14,733
(Estimated Effective Date 10/1/23 --- 8 months reduced tax collection)
General Revenue - 4.5% $ - 9,884
Property Tax Relief - .5% $ - 1,098
Conservation Fund - .125% $ - 275
Educational Adequacy Fund - .875% $ - 1,922
Highway Fund - .5% $ - 1,098
Educational Excellence Trust Fund - $ - .000
Educational Adequacy (GR Transfer) - $ - .000
State Central Services - $ - 309
Constitutional Officers - $ - 147
Total Approximate Local City and
County Sales and Use Tax Loss $ - 4,911
FY2025
Total Approximate State Sales and Use Tax Loss $ - 22,500
General Revenue - 4.5% $ - 13,573
Property Tax Relief - .5% $ - 1,677
Conservation Fund - .125% $ - 419
Educational Adequacy Fund - .875% $ - 2,935
Highway Fund - .5% $ - 1,677
Educational Excellence Trust Fund - $ - 1,398
Educational Adequacy (GR Transfer) - $ - 124
State Central Services - $ - 473
Constitutional Officers - $ - 225
Total Approximate Local City and
County Sales and Use Tax Loss $ - 7,500
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 Department of Finance and Administration
Legislative Impact Statement
Bill: HB1089
Bill Subtitle: TO EXEMPT MORGAN NICK FOUNDATION FROM SALES AND USE TAX.
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[ The exemption would be effective on the first day of the second calendar month following the effective
date of the act. An effective date of October 1, 2023 is assumed for purposes of the revenue impact
above. ]
Taxpayer Impact :
The Morgan Nick Foundation, Inc. of Alma would be exempt from state sales taxes levied under §§
26-52-301, -302, and 26-63-402, use taxes levied under §§ 26-53-106 and -107, and local sales and
use taxes on their purchases.
Resources Required :
None.
Time Required :
Adequate time is provided for implementation.
Procedural Changes :
Updates to the sales and use tax rules will need to be promulgated.
Other Comments :
None.
Legal Analysis :
None.
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