This bill reduces the rate of the business enterprise tax for tax years ending on or after December 31, 2024. The current rate is 0.55%, and the bill proposes to reduce it to 0.50%. The fiscal impact of this rate reduction is indeterminable, as the Department of Revenue Administration is unable to predict future tax revenue. However, based on certain assumptions and information, the Department estimates a possible fiscal impact. The bill also specifies that 100% of the BET revenue will be deposited into the Education Trust Fund for taxable periods ending on or after December 31, 2024. The Department will need to update tax return forms and electronic management systems to reflect the change in the BET rate, but it does not anticipate any additional administrative costs.

Statutes affected:
Introduced: 77-E:2