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AR SB1
Bill
Status
Passed
12/9/2021
Primary Sponsor
Jonathan Dismang
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AI Summary
- Reduces individual income tax rates progressively from 2022-2025, with the top marginal rate declining from 5.9% to 4.9%, contingent on reserve fund conditions and with automatic adjustments tied to economic performance
- Reduces corporate income tax rates for both domestic and foreign corporations beginning 2023, with top rates declining from 5.7% to 5.3%, subject to the same reserve fund trigger conditions as individual tax rates
- Renames the "Long Term Reserve Fund" to "Long Term Catastrophic Reserve Fund" and requires the Chief Fiscal Officer to replenish it annually using up to 50% of the General Revenue Allotment Reserve Fund balance
- Establishes a $200 million annual revenue threshold with 75% directed to the General Revenue Allotment Reserve Fund and 25% (not exceeding $50 million) to the State Highway and Transportation Department Fund
- Creates a new income tax credit for individual taxpayers with net income up to $24,700 and indexes the standard deduction annually to the Consumer Price Index, capped at 3%
Legislative Description
To Amend The State Income Tax; To Change The Name And Funding Of The Long Term Reserve Fund; And To Declare An Emergency.
Last Action
Notification that SB1 is now Act 2
12/9/2021
Committee Referrals
Revenue and Taxation12/8/2021
Revenue & Taxation12/7/2021
Full Bill Text
No bill text available