HB 1047 Summary

• Reduces financial institutions tax rate from 7% to 6.5% of taxable income and adjusts payment allocation between the general fund and a new financial institution tax distribution fund.

• Reduces corporate income tax rates across three brackets, lowering rates by approximately 0.5-1.0 percentage points for taxable income thresholds.

• Reduces individual, estate, and trust income tax rates with new tax brackets and rates ranging from 1.51% to 3.99%, down from previous rates of 1.84% to 4.86%.

• Appropriates $341,790,000 to the superintendent of public instruction for mill levy reduction grants to school districts for fiscal years 2011-2013 and transfers $295,000,000 from the property tax relief sustainability fund to the general fund.

• Repeals chapter 57-16 on excess school district levies and directs legislative management to study property tax reform and financial institutions taxation during interim periods.