SJR 24 - Upon voter approval, this constitutional amendment will prohibit collection of franchise taxes and corporate income taxes beginning January 1, 2017. Personal income taxes and withholdings taxes will be reduced by 25% per year until eliminated. No income tax credits may be authorized after January 1, 2017, except the senior citizens property tax relief credit. No tax may be imposed on purchases for business or investment purposes. The General Assembly may provide methods for providing sales tax rebates and prebates.
Local sales tax rates, the conservation commission sales tax, and the sales tax collected for soil and water conservation and state parks may also be adjusted to compensate for lost revenues.
Beginning January 1, 2017, the state sales tax shall be four percent. The State Treasurer shall recalculate the sales tax to maintain revenue neutrality with the repealing of other taxes. If the General Assembly fails to adopt the recommended sales tax rates, withholding and income tax rates will be reduced by twenty percent. The State Treasurer will calculate a new rate to be substantially equal to the average of the last five fiscal year collections. Such new rate will become effective the first of January of the next calendar year. The state sales tax shall not exceed seven percent.
This act is similar in concept to HJR 25 (2013).