The House’s plan would raise $384.4 million in tax revenue. The House is also counting on the governor issuing $50 million in unspecified cuts. Adding that on top of other legislation passed this session, the state would have an $86 million ending balance at the end of fiscal year 2016.
▪ Raise sales tax from 6.15 percent to 6.5 percent; $164.2 million.
▪ Eliminate most itemized deductions, reduce taxpayers’ deductions for mortgage interest and property taxes paid; $97 million
▪ Increase cigarette tax by 50 cents a pack to $1.29; $40.4 million. Impose tax on e-cigarettes in July 2016.
▪ Provide amnesty on penalties to people who agree to pay back taxes owed; $30 million
▪ Tax guaranteed payments to owners of pass-through businesses who currently pay no state income tax; $23.7 million
▪ Postpone scheduled decrease in income tax rates on wage earnings; hold rates at 2.7 percent in low bracket and 4.6 in upper bracket; $26.4 million.
▪ Require Social Security number for tax credits; $3 million
▪ Requires cities and counties to hold a public election to raise property tax income by more than the rate of inflation; exception would be granted for infrastructure needs and compliance with federal and state mandates.
▪ Makes more students eligible for a $10 million private school scholarship fund; negotiators said schools must be accredited.
▪ Starting in 2019, requires automatic tax cuts if state income grows more than 3 percent in a year, adjusted for required spending on pensions and Medicaid.
▪ Grants Christmas tree farmers a tax cut worth about $40,000.