Vote Smart's Synopsis:

Vote to pass a bill that repeals the state income tax, effective July 1, 2015.

Highlights:

• Reduces the existing income tax rate of 3 percent on taxable income up to $5,000 by 1 percent each year, beginning January 1, 2017, until the rate reaches 0 percent (Sec. 1).

• Reduces the existing income tax rate of 4 percent on taxable income from $5,001-$10,000 by 1 percent each year, beginning January 1, 2020, until the rate reaches 0 percent (Sec. 1).

• Reduces the existing income tax rate of 5 percent on taxable income in excess of $10,000 by 0.5 percent each year, beginning January 1, 2022, until the rate reaches 0 percent (Sec. 1).

• Specifies that the yearly income tax rate reduction only goes into effect if state general fund revenues for the fiscal year increased by 3 percent from the previous fiscal year (Sec. 1).

• Specifies that if the general fund revenues yearly benchmark is not met, then the applicable yearly tax rate reduction will be suspended until the next calendar year for which the benchmark is met, regardless of the tax rate reduction scheduled for that year (Sec. 1).

Full Bill Text