HJR50--FAIRTAXATION
SPONSOR: Chappell
Uponvoterapproval,thisconstitutional amendmentreplacesthe
stateindividualandcorporateincometaxandstatesalesanduse
taxwithaflatsalestaxof5.11%onretailsalesofnewtangible
personalpropertyandtaxableservicesbeginningJanuary1,2028.
TheGeneralAssemblycanmakeoneadjustmenttotherateafterthe
impositionoftheflatsalestaxratetoensurethatthetaxis
revenue-neutralandthattheamountofrevenuereceivedis
substantiallyequaltotheamountofrevenuelost.
Localpoliticalsubdivisionsmustrecalculatelocaltaxratesso
thattheyproducethesameorsubstantiallysimilarrevenueas
collectedintheimmediatepreviousfiscalyear.
Exemptionsfromtaxesdescribedinthisprogramcanbeadoptedbya
two-thirdsvoteoftheelectedmembersofbothchambersofthe
GeneralAssemblyandtheapprovalbythegovernor.
Theratesoftaxationunderthisprogramwillundergoaone-time
recalculationthatwilltakeintoaccountanyadjustmentsinthe
taxbase.Thisrecalculationmustleadtotaxratesthatwill
producerevenuesubstantiallyequaltotheamountofrevenue
receivedunderthepriortaxrates.Thesenewtaxratesmustbe
recalculatedinthesamemanneriftherateoftaxleviedistobe
readjusted.
Thetaxesthataretobereplacedbythisprogramareasfollows:
(1)Withholdingtaxes,andindividualandcorporateincometaxes;
(2)Corporatefranchiseandbankfranchisetaxes;and
(3)Allexistingstatesalesandusetaxes.
TheDepartmentofRevenuewilldetermineamethodforprovidingan
annualsalestaxrebateforeachqualifiedfamily.Suchrebate
willbeequaltotheproductoftherateofsalestaxestablished
underthisprogramandtheappropriateannualpovertyguidelines.
Theterm"qualifiedfamily"willmeanoneormorefamilymembers,
includingaspouse,child,stepchild,grandchild,parent,
grandparent,brother,sister,oranysuchrelations.