Counties can tax local sales to credit property taxes

A county may impose a gross receipts tax of up to one-half percent on certain local sales and services. The tax covers tangible goods, electronically transferred products, and services taxable under the state sales and use tax rules in that county. The county governing body must adopt an ordinance and create a fund for the tax proceeds; county voters may refer the ordinance for a vote, and registered voters may initiate one. The tax must follow state sales and use tax rules, except for its rate. A new tax or rate change may take effect only on January 1 or July 1, after at least 90 days' notice to the state revenue department. A referred ordinance takes effect on that schedule only if voters approve it.

Property tax bills must state the amount of any credit from a county gross receipts tax. This applies to written property tax bills for property that receives a credit from the county tax. The bill must state a credit only if one was applied to the property. The bill must show the credit for taxes payable in 2028 and each year thereafter.

A new or increased county gross receipts tax may not be charged on certain construction materials. The restriction covers materials incorporated into construction work under the qualifying contract. The materials must be incorporated into construction work under a contract bid or entered into on or before the tax or increase takes effect. The contract must have been bid or entered into on or before the effective date of the tax or tax increase.