In personal income tax, further providing for imposition of tax; in gross receipts tax, further providing for imposition of tax, providing for transfers to Alternative Fuels Incentive Fund and further providing for establishment of revenue-neutral reconciliation; eliminating the tax imposed upon each dollar of the gross receipts received from the sales of electric energy; providing for the benefit of consumers and for a civil penalty; and making a repeal.
Impact
The introduction of HB2388 is poised to impact various aspects of state law regarding taxation. By eliminating the gross receipts tax on electric energy sales, the bill aims to directly benefit consumers through lower energy costs. The proposed adjustments also involve transfers to the Alternative Fuels Incentive Fund, which may bolster initiatives aimed at promoting alternative energy sources. This potential shift in funding priorities could influence the state's approach to energy policy and environmental sustainability.
Summary
House Bill 2388 proposes significant changes to the taxation framework concerning personal income tax and gross receipts tax. The bill seeks to further define the imposition of these taxes, specifically targeting the gross receipts received from the sales of electric energy, which it aims to eliminate. This change is proposed with the intent to ease the tax burden on consumers while ensuring revenue neutrality for the state's funding mechanisms, particularly related to alternative fuel incentives.
Sentiment
The sentiment surrounding HB2388 appears to be mixed, with supporters emphasizing its consumer-focused approach by potentially lowering energy costs. However, there may also be concerns about the implications for state revenue and whether the elimination of this tax could lead to funding gaps elsewhere. As the bill addresses taxation, it is likely to attract scrutiny from fiscal conservatives and proponents of alternative energy alike, creating a complex landscape of support and opposition.
Contention
Notable points of contention surrounding HB2388 include the balance between consumer benefits and the fiscal health of the state. While proponents may argue that eliminating the gross receipts tax on electric sales will provide immediate savings to consumers, detractors may raise concerns about the long-term financial implications for state budgets. Additionally, discussions around how the proposed transfers to the Alternative Fuels Incentive Fund will be utilized and monitored could further amplify the debate over the bill's potential outcomes.
In sales and use tax, further providing for definitions and for imposition of tax; and, in gross receipts tax, further providing for imposition of tax.
In sales and use tax, further providing for definitions, for imposition of tax and for exclusions from tax; and, in gross receipts tax, further providing for imposition of tax.
In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries; and, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.