HB 843 Summary

• Repeals current individual income tax provisions and establishes a new progressive tax rate structure effective January 1, 2015, with rates ranging from 1.5% for income under $2,000 to 9% for income over $50,000.

• Maintains existing tax tables and rates (with increments up to 6%) for tax years ending on or before December 31, 2014.

• Limits the federal income tax deduction for individual taxpayers to $5,000 on single returns and $10,000 on combined returns for tax years ending on or before December 31, 2014.

• Creates a new refundable tax credit for residents beginning in 2015, ranging from $150 for lower-income taxpayers to sliding amounts per eligible person based on federal adjusted gross income and filing status.

• Requires voter approval through a referendum election held on the Tuesday following the first Monday in November 2014 to become effective.