| SB 0283 | Reduces federal income tax deduction for corporations and individuals; revenue to replace local sales tax on food |
| Sponsor: | Clay | |||
| LR Number: | S1223.01I | Fiscal Note: | 1223-01 | |
| Committee: | Ways and Means | |||
| Last Action: | 02/09/99 - Hearing Conducted S Ways & Means Committee | Journal page: | ||
| Title: | ||||
| Effective Date: | August 28, 1999 | |||
SB 283 - This act exempts food from local sales taxes imposed by political subdivisions. The act also reduces the limits on deductibility of federal income tax for individuals and corporations: the current limit of $5,000 for single taxpayers is reduced to $4,000; and the $10,000 limit on married taxpayers filing a combined return is reduced to $8,000. The current limit of 50% on deductibility of federal income tax by corporations is reduced to 40%. The revenue increase from the lowered limits on federal income tax deductibility is used to fund the "Local Revenue Replacement Fund" which the act creates. The money in the fund is then distributed by the Director of Revenue to the local political subdivisions to replace the revenue lost as a result of the exemption of food.
The act has a referendum clause.
RUSS HEMBREE