The bill amends the General Sales Tax Act of 1933 by modifying section 4n, which pertains to the sales tax exemption for residential use of electricity, natural or artificial gas, and home heating fuels. The amendment specifies that these sales are exempt from the sales tax, removing the previous stipulation regarding an additional 2% sales tax rate that was approved by voters in 1994.

Additionally, the bill eliminates the complex proration requirements based on the number of customers a taxpayer has in the state, which previously dictated how the additional tax rate was applied. Instead, the new language simplifies the tax application process by stating that the sales of these utilities for residential use are exempt from the tax under this act, thereby streamlining the tax obligations for both taxpayers and consumers.

Statutes affected:
Senate Introduced Bill: 205.54