2007 Legislative Document (House) 1833 (To Provide Property Tax and Income Tax Relief)

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• Introduced by Rep. Randy E. Hotham on April 5, 2007, this bill provides a framework for property tax relief and income tax relief discussions in the following ways. Part A increases the homestead property tax exemption from $13,000 to $50,000. Part B increases benefits by reducing the threshold for 100% reimbursement of property taxes from 8% of income to 6% of income. It also changes the maximum property taxes that may be considered in the formula from $3,000 to $2,400 for single-member households and from $4,000 to $3,400 for households with 2 or more members, having the effect of reducing the income eligibility threshold to $60,000 for single-member households and $85,000 for households with 2 or more members. Part C increases the earned income tax credit from 5% of the federal credit to 25% and makes it refundable. Part D provides that the personal exemption under the income tax will be the same as the federal personal exemption, increasing the amount from $2,850 to $3,400 for tax years beginning in 2007. Part E increases the low-income tax credit threshold from $2,000 of taxable income to $10,000 of taxable income. Part F reduces personal income tax rates and adjusts brackets. Part G eliminates the income tax incorporation of the standard deduction or itemized deductions claimed on a federal income tax return. Part H increases the excise tax on beer from 25¢ per gallon to 50¢ per gallon and on wine from 30¢ per gallon to 45¢ per gallon. Part I changes the rate of tax on all taxable income for corporations to 8.93%. Part J increases the sales tax on meals and lodging from 7% to 9%. Part K repeals various sales tax exemptions and broadens the sales tax and service provider tax to cover certain services not currently taxed. It also reinstitutes the sales tax on nonstaple foods.
  • Referred to the Taxation Committee on April 5, 2007.
• Received in the Senate on April 8, 2008.
• Failed in the Senate by voice vote on April 8, 2008, the house and/or senate have decided against further actions and the bill is dead.

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Introduced by Rep. Randy E. Hotham on April 5, 2007. New Comment