This bill proposes to amend current statutes by exempting the gross income derived from renting required college textbooks from bookstores from the transaction privilege tax (TPT) personal property rental classification. Specifically, it will require that the gross proceeds of sales or gross income from renting these textbooks be deducted from the tax base of the personal property rental classification of TPT. This change aims to alleviate the tax burden on students renting textbooks required by state universities or community colleges.

Additionally, the bill stipulates that the textbook rental deduction will apply to taxable periods starting on the first day of the month following the general effective date of the act. The current statute, which includes various exemptions under section 42-5061, will be updated to include this new provision as paragraph 17. Overall, the bill seeks to provide financial relief to students by reducing the tax implications associated with renting necessary educational materials.

Statutes affected:
Introduced Version: 42-5071
House Engrossed Version: 42-5071