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Bill > SB394

OR SB394

OR SB394
Relating to corporate activity tax revenues.

summary

Introduced
01/13/2025
In Committee
01/17/2025
Crossed Over
Passed
Dead
06/27/2025

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act says that moneys from the CAT tax go to PERS to pay down the UAL, instead of to the Fund for Student Success, for 10 years. (Flesch Readability Score: 78.7). Provides that, for 10 years, revenues from the corporate activity tax are transferred to the Public Employees Retirement Fund for payment of the unfunded actuarial liability of the Public Employees Retirement System, instead of to the Fund for Student Success.

AI Summary

This bill modifies how revenues from the Corporate Activity Tax (CAT) are allocated for a period of 10 years, redirecting funds from the Fund for Student Success to the Public Employees Retirement Fund (PERS) to help pay down the system's unfunded actuarial liability (UAL). Specifically, from tax years beginning on or after January 1, 2026, and before January 1, 2036, the net revenue from the corporate activity tax will be transferred to PERS instead of the Fund for Student Success. After January 1, 2036, the tax revenue will revert to being transferred back to the Fund for Student Success. The bill ensures that the Department of Revenue can continue to pay administrative expenses related to the tax and maintain a working balance of up to $500,000 for potential refunds. This temporary reallocation of funds is intended to help address the long-term financial challenges of the public employees retirement system while providing a defined timeline for returning to the original fund allocation.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

In committee upon adjournment. (on 06/27/2025)

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