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|
SPONSOR: |
Park |
DATE TYPED: |
2/07/02 |
HB |
315 |
||
|
SHORT TITLE: |
Raise Adjusted Gross Income |
SB |
|
||||
|
|
ANALYST: |
Smith |
|||||
REVENUE
|
Estimated Revenue |
Subsequent Years
Impact |
Recurring or Non-Rec |
Fund Affected |
|
|
FY02 |
FY03 |
|
|
|
|
|
($39,200.0) |
($50,800.0) |
Recurring |
State
General Fund |
(Parenthesis ( )
Indicate Revenue Decreases)
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis
of Bill
This measure would adjust personal income tax brackets and index rates in a way that would provide approximately $40 million in tax relief in tax year 2003, and $50 million in relief in tax year 2004. The indexing feature would provide increasing tax relief in years beyond 2004. Differences in brackets under current and proposed law are shown below. TRD has constructed the following tables.
|
Current Rates
(%) |
Taxable
Income |
Taxable
Income |
Taxable
Income |
Taxable
Income |
||||||||
|
Married
Filing Joint |
Married
Filing Separate |
Single |
Head
of Household |
|||||||||
|
1.7 |
0 |
to |
8,000 |
0 |
to |
4,000 |
0 |
to |
5,500 |
0 |
to |
7,000 |
|
3.2 |
8,000 |
to |
16,000 |
4,000 |
to |
8,000 |
5,500 |
to |
11,000 |
7,000 |
to |
14,000 |
|
4.7 |
16,000 |
to |
24,000 |
8,000 |
to |
12,000 |
11,000 |
to |
16,000 |
14,000 |
to |
20,000 |
|
6.0 |
24,000 |
to |
40,000 |
12,000 |
to |
20,000 |
16,000 |
to |
26,000 |
20,000 |
to |
33,000 |
|
7.1 |
40,000 |
to |
64,000 |
20,000 |
to |
32,000 |
26,000 |
to |
42,000 |
33,000 |
to |
53,000 |
|
7.9 |
64,000 |
to
|
100,000 |
32,000 |
to
|
50,000 |
42,000 |
to
|
65,000 |
53,000 |
to
|
83,000 |
|
8.2 |
100,000 |
& |
above |
50,000 |
& |
above |
65,000 |
& |
above |
83,000 |
& |
above |
|
Proposed
Rates (%) |
Taxable
Income |
Taxable
Income |
Taxable
Income |
Taxable
Income |
||||||||
|
Married
Filing Joint |
Married
Filing Separate |
Single |
Head
of Household |
|||||||||
|
1.7 |
0 |
to |
9,000 |
0 |
to |
4,500 |
0 |
to |
6,000 |
0 |
to |
8,000 |
|
3.2 |
9,000 |
to |
18,000 |
4,500 |
to |
9,000 |
6,000 |
to |
12,000 |
8,000 |
to |
15,500 |
|
4.7 |
18,000 |
to |
27,000 |
9,000 |
to |
13,500 |
12,000 |
to |
17,550 |
15,500 |
to |
22,500 |
|
6.0 |
27,000 |
to |
45,000 |
13,500 |
to |
22,500 |
17,550 |
to |
29,000 |
22,500 |
to |
37,000 |
|
7.1 |
45,000 |
to |
72,000 |
22,500 |
to |
36,000 |
29,000 |
to |
47,000 |
37,000 |
to |
60,000 |
|
7.9 |
72,000 |
to
|
140,000 |
36,000 |
to
|
70,000 |
42,000 |
to
|
90,000 |
60,000 |
to
|
115,000 |
|
8.2 |
140,000 |
& |
above |
70,000 |
& |
above |
90,000 |
& |
above |
115,000 |
& |
above |
FISCAL IMPLICATIONS
The FY 2003 impact reflects approximately 97% of
the full 2002 tax year effect. Late
filers with extensions of time to file and delinquent filers delay about 3% of
the tax year revenue into FY 2004. The
FY 2003 impact comprises about 4% of projected personal income tax collections
for the period. The FY 2004 impact
reflects the first year of indexing based on a forecast 2.4 percent inflation
rate. Under the indexing provision,
each percentage point increase in the rate of inflation increases the annual
revenue impact by about $3.5 million.
SS/njw:ar
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