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| SPONSOR: | Vigil | DATE TYPED: | 03/01/01 | HB | 841 | ||
| SHORT TITLE: | Net Income Exemption for Blind and Seniors | SB | |||||
| ANALYST: | Rael | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (6,000.0) | $ (6,200.0) | Recurring | General Fund | |
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
The Net Income Exemption for Blind and Seniors increases the dollar amount and income eligibility for the blind and seniors exemption.
The bill proposes that the current $8,000 phased-down exemption from income for taxpayers 65 and over be increased to $10,000 and that the floor and ceiling amounts also be increased. In the case of single taxpayers, the floor is increased from $18K to $24K and the ceiling increased from $28,500 to $42,000. For married joint taxpayers, the floor is increased from $30,000 to $40,000 and the ceiling from $51K to $67K.
FISCAL IMPLICATIONS
The figures below are from the Taxation and Revenue Department.
| Current
Returns w/ Deduction |
Current Liability | Proposed Liability | Decrease in Liability | %
Decrease |
Decrease per Return | |
| Filing Status | ||||||
| Single | 28,623 | 24,863 | 23,050 | (1,813) | -7.3% | ($63.34) |
| Married Joint | 33,290 | 62,355 | 58,090 | (4,265) | -6.8% | ($128.12) |
| Married Separate | 259 | 885 | 861 | (24) | -2.7% | ($92.66) |
| Head of Household | 1,700 | 813 | 696 | (117) | -14.4% | ($68.82) |
| 63,872 | 88,916 | 82,697 | (6,219) | -7.0% | ($97.37) | |
| 0 to 8,000 | 16,511 | 70 | 62 | (8) | -11.4% | ($0.48) |
| 8,000 to 16,000 | 15,920 | 81 | 37 | (44) | -54.3% | ($2.76) |
| 16,000 to 24,000 | 14,061 | 722 | 218 | (504) | -69.8% | ($35.84) |
| 24,000 to 32,000 | 7,546 | 2,168 | 1,061 | (1,107) | -51.1% | ($146.70) |
| Over 32,000 | 9,834 | 85,874 | 81,317 | (4,557) | -5.3% | ($463.39) |
| 63,872 | 88,915 | 82,695 | (6,220) | -7.0% | ($97.38) |
ADMINISTRATIVE IMPLICATIONS
The TRD reports that although some systems reprogramming will be required, the administrative impact will be minimal.
FAR/njw:ar