SB 56 Summary

• Increases personal income tax rates for high earners starting January 1, 2021, with top marginal rate rising from 11% to 16% for incomes over $400,000 (joint filers) through December 31, 2027, then reverting to 11%.

• Increases corporate income tax rate from a tiered system (4.4%-6.4%) to a flat 9.6% rate 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 for individuals, estates, and trusts.

• Temporarily suspends 17 general excise tax and use tax exemptions from July 1, 2021 through June 30, 2023, imposing a 4% tax on previously exempt gross income and purchases.

• Significantly increases conveyance tax rates on property sales valued $1,000,000 or greater, with rates rising from 0.10%-1.00% per $100 to 0.30%-4.00% per $100 for most properties, generating revenue for state operations.