GREEN SHEET REDIGEST
HB 76 2016 First Extraordinary Session Stokes
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
(Constitutional Amendment) Eliminates the income tax deduction for federal income
taxes paid for purposes of computing individual and corporate income taxes and
references to the maximum amount of individual income tax rates and brackets (Item
#3).
HB 76 Reengrossed 2016 First Extraordinary Session Stokes
Present constitution authorizes equal and uniform taxes to be levied on net income. Further
authorizes the rates for these taxes to be graduated according to the amount of the taxpayer's
net income; however, the state individual and joint income tax schedule of rates and brackets
are prohibited from exceeding the rates and brackets as they existed on Jan. 1, 2003.
Present constitution authorizes federal income taxes paid to be allowed as a deductible item
in computing state income taxes for the same period.
Proposed constitutional amendment changes present constitution by eliminating the
deductibility of federal income taxes paid when computing both individual and corporate
income tax liability and eliminates references to the maximum amount of the individual
income tax rates and brackets from the constitution in favor of establishing a maximum
individual income tax rate of 4.75%.
Effective January 1, 2017, and applicable to all tax years beginning on and after the effective
date.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 8, 2016.
(Amends Const. Art. VII, ยง4(A))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Establish a maximum rate of 4.75% for purposes of calculating individual
income taxes.
2. Add an effective date of January 1, 2017.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Makes technical changes to the official ballot to be used at the election that
reiterates the approval of an enactment of a flat tax as being one of the primary
purposes of the vote.
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Prepared by James Benton.