SCS/SB 188 - This act modifies several provisions relating to taxation.HIGHER EDUCATION ENDOWMENT TAX
For all tax years beginning on or after January 1, 2020, this act imposes a tax on the endowments of qualifying institutions of higher education at a rate of 1.9% of the aggregate fair market value of the assets of such endowments. The tax shall apply to the endowments, as defined in the act, of higher education institutions that 1) are affiliated with, or provide medical faculty to, any abortion facility, 2) offer specific medical fellowships that offer training in performing or inducing abortions, or 3) support in any manner any abortion facility where abortions are performed or induced when not necessary to save the life of the mother.
All revenues generated by the endowment tax shall be deposited in the General Revenue Fund. (Section 146.200)
INDIVIDUAL INCOME TAX
Current law provides for a reduction in the top rate of income tax over a period of years from 6% to 5.5%, with each cut becoming effective if net general revenue collections meet a certain trigger, with an additional reduction in the top rate of tax of 0.4% to take effect in the 2019 calendar year. For all tax years beginning on or after January 1, 2020, this act further reduces the top rate of tax by 0.3%, with an eventual top rate of tax of 4.8%.(Section 143.011)
JOSHUA NORBERG