The bill proposes the repeal of the alternate realty improvement contractor's excise tax, which eliminates the tax on the gross receipts of prime contractors and subcontractors involved in realty improvement contracts. This repeal also removes various provisions concerning the reporting and payment of the contractor's excise tax, including the ability to report on an accrual basis, the conditions for such reporting, and penalties for non-compliance. Additionally, the bill repeals sections that define gross receipts, the application of the tax, and the responsibilities of contractors regarding tax licenses and returns.

Furthermore, the bill amends existing law to clarify that the contractor's excise tax will now be governed solely by chapter 10-46A, removing references to chapter 10-46B. It also defines eligible projects for tax considerations, including laboratory, manufacturing, and wind energy facilities, while excluding retail, residential, healthcare, and natural resource transportation buildings. A new section mandates that contractor's excise taxes paid for water development projects exceeding twenty million dollars be deposited into the water and environment fund. The bill streamlines the tax code by deleting references to chapters 10-46B and 10-46A, enhancing tax administration efficiency for construction projects and ensuring contributions to state funds for water and environmental management.

Statutes affected:
Introduced, 01/29/2025: 10-46B-1, 10-46B-1.1, 10-46B-1.2, 10-46B-1.3, 10-46B-1.6, 10-46B-2, 10-46B-3, 10-46B-4, 10-46B-5, 10-46B-6, 10-46B-7, 10-46B-9, 10-46B-10, 10-46B-10.1, 10-46B-11, 10-46B-11.1, 10-46B-12, 10-46B-13, 10-46B-14, 10-46B-15, 10-46B-16, 10-46B-16.1, 10-46B-17, 10-46B-18, 1-16G-56, 5-18B-17, 5-21-3, 10-45-1.14, 10-46-5, 10-46A-12.1, 10-52-17, 10-52A-1.1, 10-56-1, 10-59-1, 10-59-32, 10-59-32.1, 10-59-40, 10-59-44, 10-59-46, 10-61-1, 49-34A-82, 49-34A-83, 10-46A-1.2, 10-46A-12.2