HB 2752 Summary

• Adds section 41-1275 requiring the Joint Legislative Budget Committee to annually calculate a potential individual income tax rate reduction based on structural budget surplus.

• Establishes methodology for calculating structural surplus: determine if ongoing state general fund revenues exceed a growth limit (prior year revenues plus inflation and population growth), then estimate fifty percent of any resulting surplus.

• Defines key terms including "growth limit" based on fiscal year 2019-2020 baseline revenues adjusted annually, "inflation" using Phoenix consumer price index, and "population growth" using U.S. Census Bureau estimates.

• Amends section 43-1011 to reduce individual income tax rates for taxable years beginning December 31, 2020 and later by an equal percentage amount equal to the calculated structural surplus reduction, if positive.

• Applies to taxable years beginning on or after December 31, 2020.