This bill modifies provisions relating to state income tax revenue.
This bill:
- defines terms;
- requires the State Tax Commission, the Office of the Legislative Fiscal Analyst, and the Governor's Office of Planning and Budget to annually determine by consensus whether federal tax law changes will likely result in a material increase in state income tax revenue;
- requires the State Tax Commission to submit a report to the Revenue and Taxation Interim Committee if a determination is made by consensus that federal tax law changes will likely result in a material increase in state income tax revenue;
- authorizes the Revenue and Taxation Interim Committee, upon receiving a report, to recommend legislative action for the next general session to negate the material increase in state income tax revenue;
- requires the State Tax Commission to submit a report to the Division of Finance following the general session if a determination is made by consensus that a material increase in state income tax revenue is still expected;
- creates the Income Tax Surplus Restricted Account (account);
- specifies purposes for which revenue deposited into the account may be used; and
- requires the Division of Finance, upon receiving a report, to deposit the estimated amount of the material increase in state income tax revenue into the account.