A06552 Summary

• Increases the base figure for the basic STAR exemption from $30,000 to $60,000 beginning in the 2021-2022 school year, with the enhanced STAR exemption base figure calculated using CPI-W multiplied by two.

• Removes previous limitations on STAR tax savings growth that capped increases at 2% annually for certain school years, allowing tax savings to grow with the exemption increases.

• Establishes new personal income tax brackets and rates for taxable years beginning in 2021 with significantly lower rates across all income levels, including rates of 2%-6.85% compared to previous 4%-8.82% rates.

• Repeals previously scheduled income tax rate increases for 2021-2024, replacing them with the new reduced rate structure that is to take effect immediately.