HB 4482 Summary

• Increases personal exemption from $3,700 to $5,000 per exemption for tax years beginning January 1, 2021 and thereafter.

• Increases special exemptions for disabled persons and qualified disabled veterans effective January 1, 2021 ($2,600 for disabled/blind/paraplegic individuals and $400 for qualified disabled veterans, up from prior amounts).

• Implements income-based phaseout of exemption allowances beginning January 1, 2021 for single filers with taxable income exceeding $80,000 and joint filers exceeding $160,000, eliminating exemptions at $100,000 and $200,000 respectively.

• Changes exemption adjustment method from Consumer Price Index to Midwest Employment Cost Index for tax years beginning January 1, 2022 and thereafter.

• Requires passage of a constitutional amendment (Senate Joint Resolution or House Joint Resolution) as a condition for the bill to take effect.