SB 245 - 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. This act increases the amount by which the top rate will be reduced. Each year the trigger is met, the top rate will be reduced by 0.2% rather than 0.1%, and the aggregate amount of reductions to be made, including reductions already made and reductions made under this act, shall not exceed 1.0%. (Section 143.011) Currently, a business income deduction is being phased in over a period of years. Each year that a general revenue growth trigger is met, the deduction amount is increased by 5%. Once fully phased in, individual taxpayers may deduct up to 20% of their business income. This act increases the amount that may be deducted. Each year that the trigger is met, the deduction amount will be increased by 10%. Once fully phased in, individual taxpayers may deduct up to 50% of their business income. (Section 143.022)
This act is identical to SB 640 (2020) and is substantially similar to SB 260 (2019), SB 667 (2018), SB 574 (2016), and SB 4 (2015).
JOSH NORBERG