SB 2839 Summary

• Phases out income tax on the first $5,000 of taxable income for individuals by calendar year 2019, beginning with $1,000 exempted in 2015 and increasing by $1,000 annually through 2018.

• Allows self-employed individuals to deduct a portion of federal self-employment taxes from gross income: 17% for 2015, 34% for 2016, and 50% for 2017 and thereafter.

• Gradually reduces corporation franchise tax rates from $2.50 per $1,000 of capital value (pre-2016) to $0.50 per $1,000 (2023-2023), with a minimum tax of $25.00 per accounting period.

• Repeals the entire corporation franchise tax law effective January 1, 2024, eliminating all franchise tax obligations on that date.

• Applies effective January 1, 2015, with provisions preserving enforcement of taxes accrued prior to the effective date.