The budget also includes several sales and use tax changes. Increasing the sales tax exemption threshold for coin-telephone calls from 10 cents or less to 25 cents or less. Expanding the exemption for telephone central office equipment. Exempting textbooks purchased by full time or part time college students. Exempting computer system hardware used in designing and developing computer software for sale.
Several provisions provide targeted relief to various taxpayers.
Increasing the maximum acreage limitation under the farmer's school property tax credit from 175 to 250 for the 1998 tax year. The maximum 250 acres was previously scheduled to apply beginning in the 1999 tax year. This change also applies under the corporation franchise tax. Taxpayers must add the gain to income when they sell the investments, resulting in a deferral of tax for the period they hold the investments. This tax benefit also applies under the corporation franchise tax, the bank tax and the insurance tax.