HB 4341 Summary

• Implements a graduated income tax rate structure beginning January 1, 2016, replacing the flat 4.25% rate with progressive brackets ranging from 3.0% to 10.0% for single filers and joint filers based on taxable income level.

• Phases out personal exemptions for higher-income taxpayers starting January 1, 2016: single filers with taxable income of $80,000 or more and joint filers with $160,000 or more experience reduced exemptions using a specific formula.

• Adjusts personal exemptions annually based on inflation using the U.S. consumer price index, with results rounded to the nearest $100 increment.

• Reduces the income tax rate from 4.25% to 4.0% for tax years between October 1, 2012 and December 31, 2015.

• Bill's effectiveness is contingent upon the passage of House Joint Resolution K (HJR K'15) as a constitutional amendment.