The "Preserving Revenue for State Programs and Economic Resiliency Act" proposes a personal income tax surcharge for individuals with an adjusted gross income (AGI) exceeding $250,000, imposing a 2% rate on income above this threshold and an additional 6% for those earning over $500,000. The bill also introduces a wealth proceeds tax for individuals, estates, and trusts with taxable income above specified limits, and establishes a new property tax classification for nonhomestead residential properties, which will be taxed at double the rate of homestead properties. A significant portion of the revenue generated from the education property tax on nonhomestead residential properties will fund the newly created School Construction Aid Special Fund.

Key insertions in the bill include definitions and provisions for the new taxes and classifications, as well as the establishment of the School Construction Aid Special Fund. The bill amends existing laws to reflect these changes, including adjustments to the grand list of towns and the allocation of funds for school construction projects. It also outlines the effective dates for various sections, with the income tax surcharge retroactively applying to taxable years starting January 1, 2026, the wealth proceeds tax effective January 1, 2027, and the new property tax classifications and rates coming into effect on January 1, 2028. The bill emphasizes annual adjustments for inflation regarding income thresholds and provides a transition provision for smooth implementation.

Statutes affected:
As Introduced: 32-4152, 32-5402, 32-5402b, 16-4025