The Joint Committee on Tax Reform’s plan for legislation this session has emerged as HB 387, and was given a Do Pass Recommendation this Tuesday by the Committee. The bill has been anticipated on the House floor, but apparently, since emerging from committee, the Senate does not appear to have the votes for passage, which has held up the introduction of the bill in the other Chamber. Subsequently, compromise is still being hammered out, with the Speaker of the House threatening to bring lawmakers back on Saturday if the work is not completed. As the bill originally passed committee, it contained, among other things, the following provisions:

  • The personal income tax rate will be cut from 6% to approximately 4.5%.
  • Most itemized deductions would be eliminated, such as for charitable giving or interest on home mortgages.
  • The tax on energy for manufacture, agriculture, and mining will be eliminated.
  • The tax on telecommunication franchise fees will be eliminated and replaced with a 7% flat tax across all telecommunication services.
  • There will be a tax on personal vehicle sales, excluding family member to family member.
  • There will be a tax levied on automobile service and parts.
  • There will be no taxes on the following (among others): groceries, veterinary services, legal fees, cigarettes, childcare, prescription drugs, haircuts, dry cleaning, cost club memberships.
Advertisements