This bill proposes to accelerate the repeal of the interest and dividends tax by changing its effective date from January 1, 2027, to January 1, 2024. The bill amends several sections of the existing law to reflect the new effective date. Specifically, it changes the date by which persons liable for the tax must make a return from December 31, 2026, to December 31, 2023, and ensures that the administrative provisions remain in effect to allow for the audit and collection of taxes due through the end of 2023. Additionally, the bill amends the application of the repeal to apply to taxable periods beginning after December 31, 2023, instead of after December 31, 2026.

The fiscal impact of the bill is indeterminable, according to the Department of Revenue Administration, as it is not possible to predict future interest and dividends tax liability or credit carryforward amounts. However, the department provides an estimate of the potential fiscal impact based on the assumption that the current tax rates will no longer be in effect if the bill is passed. The bill does not anticipate any additional administrative costs that could not be absorbed within the Department's operating budget. The fiscal note includes a static analysis table that estimates the fiscal impact per year and the cumulative fiscal impact, showing a potential decrease in revenue due to the repeal of the tax.