Signed by Governor Brad Little

Vote Smart's Synopsis:

Vote to pass a bill that reduces tax rates.

Highlights:

• Reduces income tax brackets from 5 to 4 (Sec. 1).

• Reduces income tax rates (Sec. 1).

• Specifies the tax rates for different levels of taxable income (Sec. 1):

• Income less than $1000: 1 percent;

• Income between $1000 and $3000: $10, plus 3 percent of the amount over $1000;

• Income between $3000 and $5000: $70, plus 4.5 percent of the amount over $3000; and

• Income greater than $5000: $160, plus 6 percent of the amount over $5000.

• Establishes a top individual tax rate of 6 percent (Sec. 1).

• Specifies the tax brackets in response to inflation by multiplying the tax brackets by the consumer price index (Sec. 1).

• Establishes a $350 million rebate fund from which individuals receive either 12 percent of their 2020 state tax return, or $75 per taxpayer and dependent, whichever amount is greater (Sec. 2).

• Establishes a corporate income tax rate of 6 percent (Sec. 3).

• Specifies the amount of tax relief funds transferred to tax rebate funds (Sec. 4):

• $94 million immediately upon the passage of the act;

• $110 million in 2022; and

• $204 million in 2023.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that reduces tax rates.

Highlights:

• Reduces income tax brackets from 5 to 4 (Sec. 1).

• Reduces income tax rates (Sec. 1).

• Specifies the tax rates for different levels of taxable income (Sec. 1):

• Income less than $1000: 1 percent;

• Income between $1000 and $3000: $10, plus 3 percent of the amount over $1000;

• Income between $3000 and $5000: $70, plus 4.5 percent of the amount over $3000; and

• Income greater than $5000: $160, plus 6 percent of the amount over $5000.

• Establishes a top individual tax rate of 6 percent (Sec. 1).

• Specifies the tax brackets in response to inflation by multiplying the tax brackets by the consumer price index (Sec. 1).

• Establishes a $350 million rebate fund from which individuals receive either 12 percent of their 2020 state tax return, or $75 per taxpayer and dependent, whichever amount is greater (Sec. 2).

• Establishes a corporate income tax rate of 6 percent (Sec. 3).

• Specifies the amount of tax relief funds transferred to tax rebate funds (Sec. 4):

• $94 million immediately upon the passage of the act;

• $110 million in 2022; and

• $204 million in 2023.

Full Bill Text