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| SPONSOR: | Robinson | DATE TYPED: | 02/04/00 | HB | |||
| SHORT TITLE: | Eliminate Personal Income Tax on Capital Gains | SB | 153 | ||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY00 | FY01 | |||
| $ (119,000.0) | $ (114,800.0) | Recurring | General Fund | |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to SB23
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Authorizes a 100% capital gains deduction phased-in over a three year period which would be applicable for sales of capital assets on or after January 1, 2000.
FISCAL IMPLICATIONS
TRD estimates General Fund net revenue loss of $119,000.0 in FY01 and $114,800.0 for a full year. TRD notes a slight gain of $10,000.0 in the full year estimate for deduction recovery, or that state income taxes for tax year 2000 are deductible from state taxes in tax year 2001, through federal piggy-backing.
ADMINISTRATIVE IMPLICATIONS
TRD estimates an additional 3 FTE would be required to FY01 at a cost of $150.0 for auditing.
CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP
Senate Bill 23 proposes a 100% capital gains deduction phased in over a three-year period.
DISTRIBUTIONAL IMPACTS
Almost 90% of the benefit of this proposal is received by 6% of taxpayers with taxable incomes in excess of $70,000, i.e. approximately $100,000 in household income.
Attached table summarizes capital gains realizations on 1997 returns based on AGI class as reported by TRD.
AW/njw