Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends municipal income tax laws, effective January 1, 2016.

Highlights:

• Exempts an individual from having their income taxed unless the individual has been residing in the specified city for more than 20 days (Sec. 1).

• Specifies that if the individual is working in the petroleum industry the threshold for being taxed is reduced to 12 days (Sec. 1).

• Prohibits local governments from taxing retirement benefits of company executives (Sec. 1).

• Exempts individuals from the 20-day provision if they meet 1 of the following requirements (Sec. 1):

• The individual has a base of operations in the city;

• The individual is an athlete;

• The individual is a professional entertainer; or

• The individual is a public figure.

• Exempts wages earned under the following circumstances from being taxed (Sec. 1):

• The wage was earned before 1986;

• The wage was earned from the brokerage of stocks; or

• The wage was earned from self-employment income.

• Specifies that businesses with an annual income of $500,000 or less will pay taxes only in the city in which they reside (Sec. 1).

• Specifies that, beginning in 2016, businesses may carry forward any net losses to the next year to offset income tax costs (Sec. 1).

• Specifies that if an individual splits their work between 2 cities, they will pay income tax under the municipality of the state in which they spend the most time (Sec. 1).

• Specifies that the cost for filing estimated returns is $200 and is to be paid when filing the previous year’s taxes (Sec. 1).

• Specifies that the $200 filing fee will contribute to owed accounts for that year’s income tax (Sec. 1).

• Specifies that taxpayers expecting to owe more than $100 in taxes must pay quarterly estimated taxes (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends municipal income tax laws, effective January 1, 2016.

Highlights:

• Exempts an individual from having their income taxed unless the individual has been residing in the specified city for more than 20 days (Sec. 1).

• Specifies that if the individual is working in the petroleum industry the threshold for being taxed is reduced to 12 days (Sec. 1).

• Prohibits local governments from taxing retirement benefits of company executives (Sec. 1).

• Exempts individuals from the 20-day provision if they meet 1 of the following requirements (Sec. 1):

• The individual has a base of operations in the city;

• The individual is an athlete;

• The individual is a professional entertainer; or

• The individual is a public figure.

• Exempts wages earned under the following circumstances from being taxed (Sec. 1):

• The wage was earned before 1986;

• The wage was earned from the brokerage of stocks; or

• The wage was earned from self-employment income.

• Specifies that businesses with an annual income of $500,000 or less will pay taxes only in the city in which they reside (Sec. 1).

• Specifies that, beginning in 2016, businesses may carry forward any net losses to the next year to offset income tax costs (Sec. 1).

• Specifies that if an individual splits their work between 2 cities, they will pay income tax under the municipality of the state in which they spend the most time (Sec. 1).

• Specifies that the cost for filing estimated returns is $200 and is to be paid when filing the previous year’s taxes (Sec. 1).

• Specifies that the $200 filing fee will contribute to owed accounts for that year’s income tax (Sec. 1).

• Specifies that taxpayers expecting to owe more than $100 in taxes must pay quarterly estimated taxes (Sec. 1).

Full Bill Text