Vote Smart's Synopsis:

Vote to pass a bill that amends tax laws to eliminate income taxes for individuals making $50,000 a year and gradually phases out taxes for all incomes while decreasing grocery sales tax by half.

Highlights:

• Exempts $5,250.00 for the 1979 and 1980 calendar years in taxable income for single individuals, $6,000.00 for each calendar year thereafter through calendar year 2021, and $47,700.00 for each calendar year thereafter (Sec. 1.b).

• Requires the Legislative Budget Office to provide to the Commissioner of Revenue the following amounts (Sec. 1.p.ii):

• The amount of the actual general fund revenue collected during the most recent full fiscal year, excluding any funds received from a nonrecurring revenue source;

• The amount of the actual general fund revenue collected during the fiscal year immediately preceding the most recent full fiscal year, excluding any funds received from a nonrecurring revenue source;

• The inflation factor;

• The adjusted inflation factor; and

• The tax reduction growth amount for the current fiscal year.

• Establishes every person engaging or continuing within this state in the business of selling any tangible personal property whatsoever there is hereby levied, assessed and shall be collected a tax equal to 9-9.5 percent of the gross proceeds of the retail sales of the business (Sec. 2-1.a).

• Establishes from and after July 1, 2021, retail sales of food for human consumption not purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, but which would be exempt from the taxes imposed if the food items were purchased with food stamps, shall be taxed as follows (Sec. 2.n):

• From and after July 1, 2021, through June 30, sales will be taxed at the rate of 4-4.5 percent);

• From and after July 1, 2024, through June 30, 2026, sales be taxed at the rate of 4 percent; and

• From and after July 1, 2026, sales will be taxed at the rate of 3.5 percent.

• Exempts sales of potable water to such a church from taxable gross income of the business if the electricity, current, power, natural gas, liquefied petroleum gas or potable water is utilized on property that is primarily used for religious or educational purposes (Sec. 3.a.ii).

• Specifies any person failing either to execute any bond herein provided, or to pay the taxes in advance, before beginning the performance of any contract will be denied the right to perform such contract until he complies with such requirements (Sec. 5-3).

• Authorizes a taxpayer, including a married couple filing a joint return, in the same taxable year, to either or both (Sec. 31-4):

• Contribute to a qualifying charitable organization, other than a qualifying foster care charitable organization, and claim a credit; or

• Contribute to a qualifying foster care charitable organization and claim a credit.

• Requires taxpayers taking a credit to provide the name of the eligible charitable organization and the amount of the contribution to the department on forms provided by the department (Sec. 32-3).

Full Bill Text