H 163 25% GRT DEDUCTION FOR SMALL BUSINESSES

Rep John Block

Actions: [2] HCEDC/HTRC-HCEDC [14] DNP-CS/DP-HTRC

Scheduled: Not Scheduled

 House Bill 163 (HB 163) provides a 25% Gross Receipts Tax deduction for small businesses that have no more than four employees who have worked at least 44 weeks. 

 House Bill 163 (HB 163) creates a Gross Receipts Tax (GRT) deduction for certain small businesses. Qualifying businesses may deduct 25% of the receipts from gross receipts.

A qualifying small business has no more than four full- or part-time employees who are employed for at 44 weeks in the 12-month period before the deduction is claimed.

Taxation and Revenue must present an annual report to relevant committees and information necessary to evaluate the deduction’s effectiveness.

HB 163 is effective July 1, 2023.
 

 03/06/2023 House Commerce and Economic Development Committee substitute for House Bill 163 (HB 163 HCEDCcs)

HB 163 HCEDCcs provides a 25% State Gross Receipts Tax (GRT) deduction for certain small businesses. Qualifying businesses must have received less than $1 million in gross receipts in the prior year. A small business has no more than four full- or part-time employees who are employed for at 44 weeks in the 12-month period before the deduction is claimed.

The credit is limited to $20,000 per year. If the credit exceeds the tax liability, the overage is carried forward. 

The bill provides that the GRT distribution to local governments include the amount that is deducted, so the General Fund will make up the difference.

Taxation and Revenue must present an annual report to relevant committees and information necessary to evaluate the deduction’s effectiveness.