HB 109 Summary

• Reduces personal income tax rates by 0.05% across all existing tax brackets for taxable years beginning after December 31, 2016.

• Creates two new higher income tax brackets: 6.55% for income between $60,000-$125,000 and 7.05% for income between $125,000-$250,000, with a top rate of 7.80% for income exceeding $250,000.

• Implements a tiered reduction of itemized deductions based on adjusted gross income: 20% reduction for income $125,001-$160,000; 40% for $160,001-$190,000; 60% for $190,001-$220,000; 80% for $220,001-$250,000; and 100% reduction for income exceeding $250,000.

• Applies these changes to taxable years beginning after December 31, 2016, replacing the previous tax structure that expired December 31, 2013.