Summary as introduced:
Individual income tax rate. Reduces the top marginal individual income tax rate, currently 5.75 percent, whenever an individual income tax credit expires. The 5.75 percent rate would be reduced by an amount that generates approximately the same amount of additional annual revenue anticipated to be received from the expiration of the credit. The Tax Commissioner would determine the amount of the reduction rounded to the nearest 0.01 percent.
The adjusted tax rate would become effective beginning with the taxable year immediately following the first taxable year for which the credit is no longer allowable.
If the 5.75 percent rate is ever reduced to a 0.00 percent rate for a taxable year, then the five percent marginal income tax rate would be imposed on all taxable income in excess of $5,000. Currently, the five percent marginal income tax rate is imposed on income in excess of $5,000 but not in excess of $17,000.
The provisions of the bill would become effective beginning with the 2016 taxable year.Full text:
01/12/16 House: Prefiled and ordered printed; offered 01/13/16 16102841D pdf | impact statement
01/12/16 House: Prefiled and ordered printed; offered 01/13/16 16102841D
01/12/16 House: Referred to Committee on Finance
02/09/16 House: Assigned Finance sub: Subcommittee #1
02/10/16 House: Subcommittee recommends continuing to 2017 by voice vote
02/15/16 House: Continued to 2017 in Finance by voice vote
12/01/16 House: Left in Finance