SB3126 Summary

• Reduces the corporate income tax rate to 3.5% for taxable years beginning on or after January 1, 2014, eliminating the previously scheduled 5.25% rate.

• Removes provisions that would have reduced corporate income tax rates if state spending exceeded specified limits, making the 3.5% rate permanent rather than conditional.

• Increases the minimum wage for employees 18 years of age or older to $12 per hour effective October 1, 2014, up from the current $8.25 per hour.

• Modifies individual income tax rates by clarifying that any state spending limitation reductions apply only to individuals, trusts, and estates at 3%, not to corporations.

• Takes effect immediately upon becoming law.