Bill > H7805

This bill establishes a phased reduction of personal income tax rates over five years, starting January 1, 2027, with a total reduction of ten percent, implemented in equal annual increments of two percent. The bill also includes provisions for fiscal oversight, allowing the Director of Revenue to recommend delaying scheduled tax rate reductions if general revenues significantly underperform estimates, with any delayed reductions to take effect in a subsequent year once revenues stabilize, unless otherwise legislated. Furthermore, the Director of Revenue is required to submit a report by January 15, 2029, to the General Assembly evaluating the fiscal impact of these rate reductions, changes in tax collections, taxpayer behavior, economic trends, and offering recommendations on continuing the phase-in schedule. The bill also contains a severability clause, meaning if any part of these new provisions is found invalid, the rest will remain in effect.

Budget and Finance

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