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 includes the removal of sections detailing the tax's application, reporting requirements, and penalties for non-compliance. Additionally, the bill amends existing language to clarify that the contractor's excise tax will now be governed solely by chapter 10-46A, removing references to chapter 10-46B, thereby streamlining the legal framework and simplifying tax obligations for contractors.

Furthermore, the bill clarifies the definition of a "project" to include specific facilities such as laboratory and testing facilities, manufacturing facilities, and wind energy facilities, while excluding buildings primarily used for retail sales, residential housing, healthcare services, and transportation of natural resources. It introduces a requirement for contractor's excise taxes paid for water development projects exceeding twenty million dollars to be deposited into the water and environment fund. The bill also makes several deletions of references to chapter 10-46B, specifies the posting of excise tax license numbers with building permits, outlines surety obligations regarding tax payments, and establishes procedures for electronic filing and remittance of taxes, enhancing clarity and efficiency in the administration of contractor taxes.

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