LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 274 HLS 21RS 793
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 24, 2021 8:09 AM Author: BISHOP, S.
Dept./Agy.: Revenue
Subject: Income Tax Analyst: Greg Albrecht
TAX/INCOME TAX RE SEE FISC NOTE GF RV See Note Page 1 of 1
(Constitutional Amendment) Provides for the rates and brackets for purposes of calculating income taxes and limits the
mandatory deduction for federal income taxes paid to corporate income taxes
Present constitution requires a deduction of federal income taxes when computing state income taxes, and prohibits the
rates and brackets from exceeding those in effect on January 1, 2003.
Proposed amendment specifies the requirement for a federal income taxes paid deduction for corporate income tax, thus
removing the requirement for such a deduction for individual income tax. Also provides that rates and brackets shall be
provided for in law. 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 SEE BELOW 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
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 and the rate and bracket structure of the income tax are currently provided in statute, consistent with
constitutional provisions. This constitutional amendment does not change those statutory provisions, and does not prohibit a
federal tax deduction for individual income tax. This amendment would allow statutory changes to those provisions, but does
not itself change 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