H.B. 3 - Revenue Generation Summary

• Increases personal income tax rates for taxable years beginning after December 31, 2020, with new higher brackets reaching 13% for joint filers earning over $500,000 and implementing a rate recapture mechanism that phases out lower tax brackets for high earners.

• Increases the capital gains tax rate from 7.25% to 11% for individuals, estates, and trusts.

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

• Temporarily suspends certain general excise tax exemptions from July 1, 2021, through June 30, 2023, and imposes a 4% tax on previously exempt gross income and purchases, affecting categories such as contractor deductions, agricultural commodities, and aircraft rentals.

• Increases conveyance (property transfer) taxes for properties valued at $1,000,000 or greater, with rates ranging from 60 cents to $2.50 per $100 of value depending on property price and buyer eligibility for homeowner exemptions.