SCS/SBs 406, 418, 339, 12, 7, 110, 156, & 35 - This act reduces the state sales tax rate to one percent on food as defined under the federal food stamp program. Retailers are entitled, for a one-year period, to receive a refund of three percent of all taxes collected and remitted on food. The sales tax reduction is effective July 1, 1997, or upon passage and approval, whichever is later.

The act establishes an income tax exemption for income obtained from privately funded annuities, pensions, or other retirement allowances. For all tax years beginning after January 1, 1997, retirees are allowed to deduct $6,000 if filing an individual return with an adjusted gross income less than $25,000 or if filing a combined return with an adjusted gross income less than $32,000.

The act also allows an income tax credit for costs incurred in the rehabilitation of a historic building in a historic district. The credit is allowed in an amount equal to twenty- five percent of total rehabilitation costs if those costs exceed fifty percent of the total basis in the property and the rehabilitation meets the standards of the state historic preservation officer. The credit may be carried back for three years or carried forward for ten years.

The bill contains an emergency clause.
RUSS HEMBREE