House Bill 349 Summary

• Establishes a phased reduction of individual income tax rates from 7.8% to 5.0% maximum between 2013 and 2021, with specific rates set for each tax year through 2021 and indexed for inflation thereafter using the consumer price index.

• Reduces corporate income tax rates from 7.6% to 5.0% between 2013 and 2020, with annual decreases specified for each year through 2020 and remaining at 5.0% for 2020 and later years.

• Adjusts income tax bracket thresholds starting in 2013 to account for inflation using the consumer price index, with the base year changed from 1998 to 2020.

• Allows the legislature and governor to jointly suspend the scheduled rate reductions for any given tax year if a temporary general fund spending reduction of at least 1% is in effect on October 1 of that tax year.

• Effective date of January 1, 2013.