Relating to taxation

ARTICLE 1 - INCOME AND CORPORATE FRANCHISE TAXES

Requiring taxes required to be deducted and withheld by partnerships, S corporations and trusts to be paid on a quarterly basis as estimated taxes; disallowing trade or business expense income tax deductions for fines, penalties, damages or expenses paid to governmental units, defining fine, penalty, damages or expenses; eliminating the exclusion of certain wages from allocation to the state of income not derived from a trade or business; providing for income tax withholding for other than employees performing work for the employer

ARTICLE 2 - FEDERAL UPDATE

Updating certain state income tax and property tax refund provisions to changes in the internal revenue code (IRC), providing an income tax subtraction for certain required additions for S corporation shareholders

ARTICLE 3 - SALES, USE AND SPECIAL TAXES

Prohibiting commissioner of administration, state agency or legislative goods or services procurement contracts with foreign vendors failing to register to collect sales and use taxes on sales in the state, exemptions, requiring vendor submission of verification of registration to the agency or legislature; imposing a gross receipts tax on the sale of liquor, specifying certain duties of the commissioner of revenue; excluding event souvenir clothing from the sales tax exemption for clothing, defining event souvenir clothing; excluding transportation, transmission or distribution of petroleum, liquefied or natural gas, water or steam through pipes, lines, tanks or mains from the definition of industrial production and machinery or equipment used in the transportation or distribution from the definition of capital equipment for sales tax exemption purposes and excluding certain telecommunications equipment from the exemption; providing for the collection of sales taxes on motor vehicle leases; imposing a sales tax on wholesales of cigarettes and imposing a floor stocks sales tax; defining direct business for insurance gross premium tax purposes; eliminating the repeal of the rental motor vehicle tax

ARTICLE 4 - TAX SHELTER AND VOLUNTARY COMPLIANCE INITIATIVES

Requiring and providing for the commissioner of revenue to develop and administer a tax shelter voluntary compliance initiative, specifying certain eligibility requirements, defining tax shelter; providing for the registration of tax shelters; specifying certain material advisors tax shelter or reportable transaction reporting requirements, providing for assessment of nonreported amounts; imposing penalties for registration or reporting failure

ARTICLE 5 - MISCELLANEOUS

Reducing 2005 and 2006 market value credit reimbursements for city local government aid (LGA) payments purposes; requiring the commissioner of finance to transfer the balance in the tax relief account to the general fund, limit
(ra)