This bill proposes several amendments to the business enterprise tax regulations and appropriates funds for nursing facilities. Firstly, it raises the threshold for businesses required to file a business enterprise tax return from $250,000 to $400,000 in gross business receipts or enterprise value tax base. Additionally, it mandates that these thresholds be adjusted biennially based on the Consumer Price Index starting in 2029. The bill also appropriates $2.5 million to the Department of Health and Human Services to support per-diem nursing facility rates for the biennium ending June 30, 2027, allowing the department to accept matching federal funds without prior approval.

Furthermore, the bill introduces a mechanism for automatic rate reductions of the business enterprise tax in the event of certified business tax revenue surpluses. Specifically, for every full $100 million of surplus, the tax rate will be reduced by 0.05 percentage points, with certain conditions that must be met for the reduction to take effect. Notably, the tax rate cannot fall below 0.25 percent, at which point the automatic reduction mechanism would cease. The bill outlines the process for certifying surpluses and requires timely notification of any rate changes to taxpayers. The effective date for the appropriation section is June 30, 2026, while the remainder of the act will take effect on January 1, 2027.

Statutes affected:
Introduced: 77-E:2
As Amended by the House: 77-E:2
As Amended by the Senate: 77-E:5
Version adopted by both bodies: 77-E:5
CHAPTERED FINAL VERSION: 77-E:5