SB 56 Summary

• Increases personal income tax rates for high earners for taxable years beginning after December 31, 2020, with top marginal rate rising from 11% to 16% for incomes over $400,000 (joint filers) and from 11% to 16% for incomes over $200,000 (single filers) through December 31, 2027.

• Increases corporate income tax from tiered rates (4.4%-6.4%) to a single flat rate of 9.6% for all corporations, including regulated investment companies and real estate investment trusts.

• Increases capital gains tax rate from 7.25% to 11% on net capital gains.

• Temporarily suspends 17 general excise tax exemptions from July 1, 2021 through June 30, 2023, and imposes a 4% tax on previously exempt transactions; also suspends use tax exemptions with 4% tax rate.

• Increases conveyance tax rates on real property sales, with rates escalating from $1.40 per $100 for properties valued $4,000,000-$6,000,000 up to $4.00 per $100 for properties valued $10,000,000 or greater.