The bill H.844, introduced by Representative Lueders, aims to modify the sales and use tax exemptions for certain fuels used in residential properties, specifically targeting second homes and short-term rentals. It proposes that property owners who have utilized their property as a second home or short-term rental within the past 12 months will be disallowed from using the sales and use tax exemption for these fuels. Additionally, a new surcharge of three percent will be imposed on residential fuel sales to properties that have either been occupied as short-term rentals or by the owner for fewer than 183 days in the past year. The revenue generated from this surcharge will be directed to the Home Weatherization Assistance Fund.

The bill also amends existing legal language regarding the definition of "residence" to include specific occupancy conditions and introduces a new subchapter that outlines the surcharge on certain residential fuel transactions. It clarifies that all sales exempt from sales and use tax under the current law will also be exempt from the new surcharge. Furthermore, the bill specifies that the surcharge will be collected and enforced in the same manner as existing sales tax, and it will take effect on August 1, 2026.

Statutes affected:
As Introduced: 32-9741(26), 32-9741, 33-2501