LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 275 HLS 21RS 487
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 22, 2021 10:34 AM Author: RISER
Dept./Agy.: Revenue
Subject: Income Tax Analyst: Greg Albrecht
TAX/INCOME TAX EG SEE FISC NOTE GF RV See Note Page 1 of 1
(Constitutional Amendment) Eliminates the mandate for the corporation income tax deduction for federal income taxes paid
Present constitution requires a deduction of federal income taxes paid when computing state income taxes (applicable to
both individual and corporate income tax).
Proposed amendment specifies the requirement for a federal income taxes paid deduction for individual income tax
(removing the requirement for corporate income tax). Effective for all tax years beginning on and after January 1, 2023.
To be submitted to the electors at the statewide election to be held on November 8, 2022.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 SEE BELOW SEE BELOW SEE BELOW $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure alone. The deduction for
federal taxes paid is currently provided in statute, for both individual and corporate income tax, consistent with current
constitutional provisions. This constitutional amendment does not change those statutory provisions, and does not prohibit a
federal tax deduction for corporate income tax. Specific statutory changes would be required to change those provisions.
This amendment does not itself provide them.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer