Community Banker Alert

PACB has been at the forefront fighting attempts by the state Department of Revenue to impose the state sales tax on certain financial institution security equipment that is currently tax exempt. Revenue is attempting to do so through the regulatory process. We have objected to this attempt and I have attached letters for your information that we have sent to Revenue and the Independent Regulatory Review Commission (IRRC) as well as legislators who serve on the House and Senate Finance Committees. Our goal is to raise enough objections that Revenue will either withdraw the regulation or IRRC or the legislative committees will reject this attempt.

Revenue is claiming this regulatory change will be “revenue neutral”. Although we have no solid data to counter this claim, we know that this equipment is currently tax exempt and would be taxable with Revenue’s proposed change.

If you have any recent data from your institution that demonstrates how much you spent on the financial institution security equipment that would be affected by Revenue’s proposals and how much sales tax you would have paid if this change occurs, that would be very helpful to share with PACB.

If you have any questions or need further information, please do not hesitate to contact Dave Transue here in the office or via email at dave@pacb.org.

Thanks so much.

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