House Bill 199 Summary

• Reduces individual income tax rates retroactively to January 1, 2021, with the top rate decreasing from 6.925% to 6.925% for income over $7,500 and lower rates for all other brackets.

• Reduces corporate income tax rate from 6.925% to 6.925% for taxable years commencing on or after January 1, 2021.

• Reduces sales tax rate from 6% to 5.3% and use tax rate from 6% to 5.3%, effective January 1, 2022.

• Repeals the food/grocery tax credit (sections 63-3024A, 63-3077G, and 63-3077H) and removes related references in family law statutes.

• Transfers Tax Relief Fund balance to the general fund in quarterly increments from January 1, 2022 through January 1, 2025, and directs future online sales tax revenue to the general fund instead of the Tax Relief Fund beginning July 1, 2024.