SB1435 Summary

• Modifies sales tax apportionment by reducing the General Revenue Fund allocation from 83.61% to 82.61% beginning fiscal year 2014, with 1% directed to the Ad Valorem Reimbursement Fund starting July 1, 2013.

• Eliminates income tax gradually through 2022: reduces top individual income tax rate to 2.25% (2013), then to 1% (2018), then to 0.75% (2019), 0.5% (2020), 0.25% (2021), and zero tax on income beginning January 1, 2022.

• Repeals numerous tax credits and preferences effective July 1, 2012, including credits for oil and gas production, child care expenses, manufacturing gas use, and capital gains deductions for individuals and corporations (ending December 31, 2012).

• Limits availability of certain tax exemptions and deductions to periods ending December 31, 2012, including retirement benefits exemptions, college savings plan contributions, Social Security benefits exclusion, and specific Armed Forces compensation deductions.

• Declares an emergency to make the act effective immediately upon passage and approval.