Bill > H2628

This bill proposes the following key changes: 1. Increases the personal income tax exemption amount for individual taxpayers, with annual adjustments based on inflation and growth in state tax revenue. 2. Reduces the state sales tax rate from 6.25% to 5% for general purchases and certain other transactions. 3. Repeals a prior law that limited the ability to increase the personal income tax rate. 4. Requires the Secretary of Administration and Finance to annually recommend the elimination of at least $50 million in tax expenditures (deductions, credits, or exemptions) to the legislative committees overseeing revenue and economic development. The overall effect of these changes would be to raise personal income tax rates while lowering the sales tax rate, potentially shifting the state's tax burden more towards income than consumption. The annual reporting requirement on tax expenditures is intended to identify potential revenue sources to offset the reduced sales tax.

Budget and Finance

https://malegislature.gov/Bills/191/H2628