The bill H.794, known as the "Preserving Revenue for State Programs and Economic Resiliency Act," proposes significant tax increases for higher income earners and establishes the School Construction Aid Special Fund. It introduces a personal income tax surcharge of 2% for individuals with an adjusted gross income (AGI) exceeding $250,000, and an additional 6% surcharge for those with AGI over $500,000. The bill also implements a wealth proceeds tax on individuals, estates, and trusts with taxable income above certain thresholds, and creates a new property tax classification for nonhomestead residential properties, which will be taxed at double the rate of homestead properties.

Additionally, the bill mandates the Commissioner of Taxes to collect information and determine tax classifications for every grand list parcel, with a deadline for submission to the Joint Fiscal Office by October 1, 2027. The Commissioner is also required to publish guidance on property classification definitions by August 1, 2027. The effective dates for various provisions include the short title and intent taking effect upon passage, the income tax surcharge being retroactively effective from January 1, 2026, the wealth proceeds tax starting on January 1, 2027, and the new property tax classifications and rates commencing on January 1, 2028.

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