Proposal would set tax rates, end tax breaks, and add vehicle fees

The proposal would set individual and corporate income tax rates and a 2% state gross receipts tax rate. Individual rates vary by filing status and taxable income; corporate rates vary by taxable income. The bill was postponed indefinitely, so these rates are not shown as enacted. The income tax provisions would apply to tax years beginning on or after January 1, 2027. The other provisions in this record would take effect January 1, 2027.

The proposal would repeal listed tax credits and deductions and end some other tax breaks on set dates. The listed tax breaks apply to individuals, businesses, and certain industries. Taxpayers could still claim eligible credits for periods before repeal and unused portions of credits already awarded. Most listed repeals would take effect January 1, 2027. The film production tax credit provisions would be repealed effective July 1, 2035; some deductions and exemptions have other end dates, including July 1, 2029 and July 1, 2035.

The proposal would change how certain tax revenue is directed and which tax increments may support redevelopment and development bonds. These provisions concern metropolitan redevelopment projects and tax increment development districts. The proposal says existing bonds and loan guarantees secured by state gross receipts tax revenue would remain protected until they are paid or fully provided for. The metropolitan redevelopment provisions would take effect July 1, 2026. The other listed provisions would take effect January 1, 2027.

The proposal would charge added annual registration fees for certain electric and plug-in hybrid vehicles. The fees would apply when an eligible electric or plug-in hybrid vehicle is registered. The fees would apply to vehicles weighing 26,000 pounds or less that meet the bill's battery and driving-range definitions. The fee provision would take effect January 1, 2027.