This bill proposes several updates to current statutes regarding individual income tax and the establishment of a K-12 infrastructure fund. It introduces a new section, 42-5706, which establishes the K-12 infrastructure fund to be administered by the department, with funds continuously appropriated and exempt from lapsing provisions. The bill also mandates that the department use these funds specifically for public school buildings and building renewal, ensuring that these funds supplement existing resources rather than replace them. Additionally, it repeals the existing section 43-1011, which pertains to income tax rates.

Furthermore, the bill introduces an additional tax rate increment of 2.6% on federal adjusted gross income exceeding $1,000,000, effective for taxable years beginning after December 31, 2026. Taxpayers who pay a significant amount in transaction privilege and use tax may be exempt from this additional increment. The bill also requires periodic adjustments to the exemption threshold based on median income tax brackets. Revenues from this new tax increment will be directed to the K-12 infrastructure fund, with the overall intent of ensuring safe and adequate public school facilities and supporting educational standards. The act is titled the "Billionaires Should Pay for the Infrastructure They Use Act" and requires a supermajority vote for enactment.

Statutes affected:
Introduced Version: 42-5706, 43-1011, 43-1015, 41-5706, 35-190