Summary of the Introduced Bill

HB 740 -- Income Tax:  Federal Income Tax Deduction and
Corporate Rate

Co-Sponsors:  Levin, Moore, Bearden

This bill decreases the state corporate income tax rate
beginning September 1, 2001, from 6.25% to 5.5%.  The bill also
increases the state corporate federal income tax deduction,
beginning September 1, 2001, from 50% of the amount of federal
income taxes paid to 75% of the taxes paid.

In addition, the bill increases the state individual income tax
deduction for federal income taxes paid from $5,000 for single
taxpayers and $10,000 for married taxpayers to $10,000 and
$15,000, respectively.  This provision will take effect January
1, 2001.

The bill requires that any reduction in revenues as the result
of these tax changes do not result in a reduction in
appropriations for education.


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Last Updated September 13, 2001 at 2:03 pm