SB 418 - This act provides for the following changes to state tax law: 1) exemption of food from all sales and use tax; 2) increase in the base state sales and use tax rate from four percent to four and six-tenths percent,, with a proportionate increase in Proposition C revenue for public school districts of one-eighth of one cent; 3) exemption of income from privately funded annuities, pensions and other retirement allowances identical to government retiree provisions; 4) increase in dependency exemption deduction for income tax purposes from $400 to $800; 5) income tax credits for contributions to maternity homes and shelters for victims of domestic violence, for rehabilitation costs of historic buildings, and for contributions to certain charitable organizations which allocate at least ninety percent of their annual revenue to education, dropout reduction, or child care.

The act also authorizes a resident taxpayer to take a credit, in an amount determined by the director of revenue, for each personal and dependency exemption claimed on that taxpayer's tax return. The amount of the credit is based on the amount necessary to refund the excess revenues determined pursuant to the Hancock Amendment.

RUSS HEMBREE