Senate Bill 2211 Summary

• Removes the phase-out provision that was gradually eliminating income tax on the first $5,000 of taxable income, restoring the 3% tax rate on that income bracket effective January 1, 2022.

• Eliminates the deduction for self-employed individuals that allowed 17-50% of federal self-employment taxes to be deducted from gross income.

• Restores the corporation franchise tax at $2.50 per $1,000 of capital value (above $100,000) and repeals the scheduled elimination of the franchise tax that was set to occur January 1, 2028.

• Effective date is January 1, 2022.