HB 6557 Summary

• Amends the City Income Tax Act to modify maximum tax rates for cities with populations over 750,000, establishing a rate of 3.00% on resident individuals and 1.50% on nonresident individuals beginning January 1, 2011.

• Eliminates provisions that would have required annual 0.1% reductions in the resident individual tax rate from July 1, 1999 through July 1, 2010 (except 2008-2009).

• Removes the conditional freeze on tax rate reductions that applied when cities met three or more specified economic hardship conditions, including budget stabilization fund depletion, low income tax revenue growth, or high unemployment rates.

• Renumbers existing subsections (6) through (9) from the previous (3) through (8) due to deletion of conditional reduction provisions.

• Preserves the ability of cities to adopt uniform income tax ordinances and allows tax rate adjustments within the limits set by this act.