HB1427: Income tax replacement.

Legislative Summary

Income tax replacement. Eliminates the state adjusted gross income tax by reducing the rate to 0%. Provides that the reduction in revenue resulting from the elimination of the state income tax must be offset by adjustments to the state gross retail tax. Provides that in calculating the local income tax (LIT), which is imposed based on a local taxpayer's state adjusted gross income, the calculation of a taxpayer's state adjusted gross income for LIT purposes shall be calculated under the adjusted gross income tax provisions as if those provisions, and the most recent adjusted gross income tax rate before its elimination, were still in effect.