TAX/SALES & USE: Provides for the payment of vendor's compensation for the timely collection and remittance of state and local sales taxes (EG1 DECREASE LF RV See Note)

HB 523 allows vendors (businesses that collect sales tax) to receive compensation for timely collecting and paying state and local sales taxes. The bill creates a specific deduction in tax reports for this compensation, based on local tax rules, provided taxes were paid on time without delinquency. It applies to all taxable periods starting July 1, 2025, and modifies existing tax collection procedures. This change directly affects businesses handling sales tax collections, streamlining how they offset costs through their tax filings.