Vote Smart's Synopsis:

Vote to pass a bill that amends and extends capital tax regulations.

Highlights:

• Requires income greater than $5,000 from interest, dividends, or capital gains to be taxed (Sec. 2).

• Specifies tax exemptions are as follows (Sec. 9):

• An income of $5,000 or less;

• An additional $7,500 if either or both taxpayers are 65 years of age or older on the last day of the tax year;

• An additional $2,500 if either or both taxpayers are blind;

• An additional $2,500 if either or both taxpayers under 65 years old and are disabled or unable to work.

• Specifies that individuals to whose total interest, dividend, or capital gain income is less than $5,000 are not required to declare said income on their tax returns (Sec. 13).

• Specifies that joint filers whose total interest, dividend, or capital gain income is less than $10,000 are not required to declare said income on their tax returns (Sec. 13).

• Requires the Department of Revenue Administration to set the following education rates (Sec. 15):

• A cost of $4,000 per pupil in “average daily membership in attendance” (ADMA);

• An additional $1,900 for each pupil in the ADMA who is eligible for a free or reduced price meal;

• An additional $740 for each pupil in the ADMA who is an English language learner; and

• An additional $2,035 for each pupil in the ADMA who receives special education services.

• Requires the Commissioner of the Department of Revenue Administration to set the education tax rate at a level sufficient to generate $272,000,000, effective July 1, 2021 (Sec. 18).

Full Bill Text