Bill > A4028

Introduced Session

This bill reduces the corporation business tax (CBT) tax rate from 9 percent to 2.5 percent of income for privilege periods ending after December 31, 2019, and provides for that tax rate to remain at 2.5 percent in perpetuity. Under the bill, the 2.5 percent rate is to apply to all CBT taxpayers. A "privilege period" is the 12 month accounting period for which tax is due for the privilege of doing business in the State. The sponsor's intent for the bill is to help businesses to withstand revenue losses incurred as a result of the government-enforced closure of businesses due to the COVID-19 pandemic, by allowing those businesses to keep a larger percentage of their earnings. The bill is to take effect immediately upon enactment and apply retroactively to January 1, 2020.

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Chris DePhillips (R)*, 

Introduced, Referred to Assembly Budget Committee (on 05/04/2020)