House Bill 559 Summary

• Requires the Economic Estimates Commission to publish estimated total personal income by January 1 each year, including government social insurance contributions and excluding personal transfer receipts, for use in computing the legislature's appropriations limit.

• Sets the ongoing appropriation expenditure limit at 5 1/3% of total state personal income for the ensuing fiscal year, with ability to exceed only by concurrent resolution and gubernatorial executive order.

• Establishes a mechanism to distribute general fund revenues exceeding the expenditure limit: first to the budget stabilization fund, then to personal property tax relief if excess revenues reach $20 million, then to permanent reduction of personal income tax, corporate income tax, and franchise tax rates beginning January 1 of the following year.

• Specifies that personal income tax rates shall be reduced by 0.1% increments until four brackets remain (1.5%, 3%, 4%, and 5%) and corporate/franchise tax rates equal 5%, then brackets shall expand until reaching specified income thresholds before future indexing.

• Provisions relating to economic estimates and expenditure limits effective July 1, 2012; provisions relating to income and franchise tax rate changes effective July 1, 2014.