HB1141 Summary

• Eliminates individual income tax for single and head-of-household filers earning less than $20,000 annually, or joint filers earning less than $40,000 annually, effective for tax years beginning after December 31, 2023.

• Reduces marginal tax rates for low- and middle-income earners by gradually scaling increases, with lower rates in all brackets up to $300,000 for joint filers and $200,000 for single filers.

• Maintains higher tax rates of 9-11% for top earners ($300,000+ for joint filers), offsetting revenue losses estimated at $198 million using 2016 tax data.

• Intended to redirect tax burden from low- and moderate-income residents to visitors and non-residents through potential offsetting increases to general excise tax, transient accommodations tax, and liquor and cigarette taxes.