|SB 0817||Reduces State Sales/Use Tax Rate by 0.25%|
|LR Number:||S3102.01I||Fiscal Note:||3102-01|
|Committee:||Ways and Means|
|Last Action:||02/29/96 - SCS Voted Do Pass w/SCS SBs 817 & 927 S Ways & Means Commi|
|Title:||SCS SBs 817 & 927|
|Effective Date:||Emergency Clause|
SCS/SB 817 & 927 - This act makes numerous tax law changes including:
(1) An income tax deduction, up to $2,500, for tuition fees paid for each dependent in grades 9-12. SECTIONS 143.111 and 143.122.
(2) An income tax exemption for any privately funded annuity, pension or retirement allowance. The exemption shall be phased-in as follows: for the period beginning January 1, 1997 and ending December 31, 1997, the first $2,000 shall be exempt; for the period January 1, 1998 to December 31, 1998, the first $4,000 shall be exempt; from January 1, 1999 and every tax year thereafter, the first $6,000 shall be exempt. Currently, this exemption only applies to state or federally funded annuities, pensions or retirement allowances. SECTION 143.124.
(3) Increasing the dependency exemption deduction from $400 to $750 for each dependent. SECTION 143.161.
(4) Reducing the state sales and use tax rate by 1/8%. These sections have an emergency clause and a termination date of one year after the effective date. SECTIONS 144.020, 144.021 and 144.440.
(5) Section 1 grants taxpayers a tax credit for 50% of the amount donated to domestic violence shelters. Section 2 grants a tax credit for 50% of the amount donated to maternity homes. In order to receive either credit, at least $100 must be donated and the maximum credit is $50,000. The credit may only be used up to the amount of the taxpayer's tax liability, but may be carried forward for four years. The aggregate maximum amount of the credits allowed in a fiscal year is $4 million, $2 million under each section.
This act contains an effective date, a contingent emergency clause and a contingent termination date.
SB 927 was incorporated into this act.