HB 1314 Summary

• Authorizes counties to levy a surcharge on transient accommodations tax if they increase real property tax rates by at least 20% in three-year intervals (starting January 1, 2022) and increase homeowner property exemptions.

• Repeals the existing allocation of transient accommodations tax revenues to counties; counties that adopt the surcharge must remit a portion of collected real property tax revenues to the State.

• Beginning January 1, 2031, requires certain taxpayers in participating counties to file an information return reporting gross income to the director of taxation.

• Establishes three new tax credits for residents of participating counties: landlord low-income tenant tax credit (50% of difference between lease rent and fair market value), residential circuit breaker tax credit for seniors 65+, and real property tax credit (50% of real property taxes paid).

• Gradually reduces individual and corporation income tax rates in three-year intervals (2022, 2025, 2028, 2031, 2034) for taxpayers in counties that adopt the surcharge, with rates declining from current levels to substantially lower rates by 2034; effective July 1, 2050.