SB 308 - This act authorizes a state income tax credit for pharmaceutical costs paid by specified senior citizens and certain disabled veterans. The pharmaceutical credit for each taxpayer is to be equal to the total amount spent on purchasing covered prescription drugs in any calendar year less any reimbursement from other sources and less 1% of income. The pharmaceutical credit can not $750 per tax year.

The act increases the senior citizen/disabled veteran property tax credit for state income tax purposes. Under current law, only claimants with qualified incomes of $13,000 or less are eligible for the tax credit. This act would increase the income maximums to $15,000 for calendar year 1997, and automatically increases the maximum by $500 per year until calendar year 2002.

The bill also increases the minimum base amount within the senior citizen/disabled veteran property tax credit. The minimum base is the level of income at which all claimants who are at or below this income level receive a tax credit equal to 100% of the amount of property tax paid. As a claimant's income level exceeds this level, the amount of property tax credit is reduced proportionately.

Under current law, this minimum base level is $5,000. The act increases this base amount to $5,900 and automatically increases it by $100 per calendar year until calendar year 2002.

The bill will become effective January 1, 1988 and applies to all tax years beginning after December 31, 1997.

CHERYL GRAZIER

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