Senate Bill 347 Summary

• Business personal property acquired after June 30, 2014 is exempt from property assessment and taxation for assessment dates after February 28, 2015, with no application required.

• Creates a state income tax credit for property taxes paid on business personal property equal to the net ad valorem property taxes paid multiplied by a credit percentage.

• Credit percentage is 10% for taxable years beginning in 2015, and increases by 10 percentage points annually if state general fund revenue collections grew during the preceding state fiscal year, with a maximum of 100%.

• Excess credits may carry over to following taxable years but cannot be refunded or carried back; pass-through entities without state tax liability may pass credits to shareholders or partners based on their distributive income percentage.

• Taxpayers must claim the credit on state tax returns and submit proof of property tax payment; the credit applies to taxable years beginning after December 31, 2014.