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IN SB0560
Bill
Status
1/20/2015
Primary Sponsor
Michael Young
Click for details
AI Summary
SB 560 Summary
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Eliminates property taxes on homesteads (primary residences) and business personal property effective January 1, 2016, with exemptions frozen at December 31, 2014 levels.
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Reduces state sales and use tax rate from 7% to 5.5% effective July 1, 2015, and expands the tax base to include service transactions (except legal services, health/mental health services, and charitable services).
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Creates state replacement distributions to local taxing units based on eliminated property tax revenue, distributed twice yearly in May and November as property tax revenue.
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Increases renter's deduction for state income tax purposes from $3,000 to $8,000 per year effective January 1, 2016.
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Deposits increased sales tax revenue in the state general fund and makes an ongoing appropriation to fund property tax replacement distributions.
Legislative Description
Property taxes and sales and use taxes. Eliminates property taxes on primary residences (homesteads) and business personal property. Decreases the state sales and use tax rate from 7% to 5.5%. Provides that the sales and use tax applies to transactions involving services, except for legal services, health or mental health services (including insurance premiums for policies covering these services), and services provided for charitable tax exempt purposes. Deposits the increased sales and use tax revenue in the state general fund. Provides an annual state distribution to offset the property tax elimination for homesteads and business personal property based on the
Last Action
First Reading: referred to Committee on Tax & Fiscal Policy
1/20/2015