Bill > HB2690

This bill, known as the "Fair Tax Act of 2026," proposes a significant shift in state taxation by eliminating individual and corporate income taxes, as well as the estate tax, starting January 1, 2028. In their place, it establishes a new "fair tax" levied on all retail sales and services at a rate of five and eleven one-hundredths percent. To offset the impact on families, the Department of Revenue will provide a monthly sales tax rebate to qualified families, calculated based on federal poverty guidelines. The bill also allows for one adjustment to the sales tax rate after its implementation to ensure revenue neutrality, meaning the new tax is intended to generate the same amount of revenue as the taxes it replaces. This measure will be submitted to voters for approval in November 2026.