HB1329 Exempts retail sales of food from local sales tax and replaces the loss of local revenue by decreasing the deductibility of federal income taxes for individuals, subject to referendum.
Sponsor: Auer, Ron (59) Effective Date:00/00/0000
CoSponsor: Dougherty, Patrick (67) LR Number: 2876L.01I
Last Action: COMMITTEE: WAYS AND MEANS
02/22/2000 - Executive Session Held (H)
VOTED DO PASS
HB1329
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT
BILL SEARCH HOUSE HOME PAGE

Available Bill Summaries for HB1329 Copyright(c)
* Introduced

Available Bill Text for HB1329
* Introduced *

BILL SUMMARIES

INTRODUCED

HB 1329 -- Taxation:  Sales Tax on Food and Federal Income Tax
Deduction

Co-Sponsors:  Auer, Dougherty, Troupe, Hilgemann, Murphy

Under current law, certain food types are taxable for local
sales tax purposes.  This bill exempts these food types from all
local sales taxes imposed by political subdivisions.  This
portion of the bill will become effective on July 1 following
the passage of the bill by the voters of the state.

The bill also reduces the maximum federal income tax paid
deduction allowed for individuals for state income tax
purposes.  The maximum individual income tax deduction for
federal income taxes paid will be reduced from $5,000 for a
single taxpayer and $10,000 for married taxpayers to $3,300 and
$6,600, respectively.  This portion of the bill will become
effective on January 1 following the passage of the bill by the
voters of the state.

All state revenue received from the reduction of the federal
income tax deduction on individuals will be deposited into an
account to be known as the Local Revenue Replacement Fund.
Moneys in this fund will be disbursed to political subdivisions
in an amount necessary to replace the lost revenues of the
political subdivisions as a result of the local sales tax
exemption on the sales of certain food types.  The fund and
disbursement of the moneys will be administered by the
Department of Revenue.

The bill also holds harmless deposits into the Outstanding
Schools Trust Fund.

The bill contains a referendum clause.


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Last Updated October 5, 2000 at 11:32 am