IN HB1284

Reduces maximum county local income tax (LIT) rates: county general purpose revenue from 1.2% to 0.7%, fire protection/EMS from 0.4% to 0.2%, and combined cap for these categories from 1.7% to 1.0%

Increases maximum LIT rate for cities/towns not eligible for municipal LIT from 1.2% to 1.9%, and raises the maximum municipal LIT rate from 1.2% to 1.9%

Lowers the population threshold for cities and towns to impose their own municipal LIT rate from 3,500 to 2,000 residents, and expands the opt-out eligibility range from under 7,000 to under 34,000

Eliminates provisions requiring local income tax expenditure rates to expire annually after December 31, 2030 and be re-adopted each year

Simplifies the fire protection/EMS revenue distribution formula by removing the square-mile multiplier and changes population source from federal decennial census to state comptroller's distribution factors report