SB 733 - This act reduces the rate of tax on personal income over a period of five years. Once fully phased in, the rate of tax for each bracket will have been reduced by one percent. The rate of tax on corporate income is reduced from 6.25% to 5.25% over a period of five years. The first tax rate reduction for both personal and corporate income will begin in 2015. The rate reductions will be fully phased in for tax years beginning on or after January 1, 2019.
Currently, taxpayers may deduct a portion of their federal income tax liability on their state income taxes. The amount is capped at $5,000 for single taxpayers and $10,000 for combined returns. This act raises the cap to $7,500 for single taxpayers and $15,000 for combined returns.