Bill
HB 5541
HB 5541 would create a state tax on capital gains (and possibly dividends) to raise revenue, affecting investors and households realizing gains or dividend income.
HB 5541 — AN ACT ESTABLISHING A TAX ON CAPITAL GAINS
Overview
HB 5541 proposes the creation of a tax on capital gains, with the bill’s subject also noting capital gains and dividends tax. The current status indicates the bill is in the early stages of consideration, with referrals to committees and no reported final passage as of the information available.
Purpose and intent
- The primary aim is to establish a new tax on capital gains (and potentially dividends) to generate state revenue. The bill’s title and subject suggest a focus on aligning taxation with gains realized from asset sales and related income, though specific rate structure and exemptions would be defined in the bill text.
Key provisions (as available)
- Text not provided in the summary. The bill would typically include:
- Definitions: what qualifies as a capital gain and which assets are covered.
- Tax rate(s): applicable rate(s) on realized gains, and whether rates differ by income level or asset type.
- Exemptions and thresholds: any exclusions (e.g., primary residence, small gains, retirement accounts) and threshold amounts.
- Tax administration: how gains are calculated, withholding or payment timing, and who collects (likely the state Department of Revenue).
- Treatment of losses: rules for netting gains and losses.
- Revenue allocation: designated uses for funds raised (e.g., general fund, specific programs).
- Interaction with existing taxes: how the new tax interacts with other state taxes (income tax, dividends tax, etc.).
Who would be affected
- Individuals and households realizing capital gains from the sale of investments or other assets.
- Potentially businesses or trusts if they realize gains from asset dispositions.
- Taxpayers who receive dividend income, if the bill’s scope includes dividends (as suggested by the subject line).
Procedural/timeline aspects
- Introduced: March 14, 2025.
- Legislative actions:
- January 21, 2025: Ref. to Joint Committee on Finance, Revenue and Bonding.
- March 14, 2025: Filed.
- April 7, 2025: Read first time; referred to State Affairs.
- Current status: Ref. to Joint Committee on Finance, Revenue and Bonding (per initial status) with later action showing referral to State Affairs.
Related legislation
- Companion bill: SB 2943.
Notes and what to expect next
- The full text is required to assess concrete provisions, including tax rates, exemptions, and revenue projections.
- If advanced, the bill would likely undergo amendments in the relevant joint committees, potential fiscal analyses, and public hearings before any floor votes.
- Watch for updates on the committee consideration and any changes to scope (e.g., whether dividends are included, and how capital gains are defined).
Compiled from official sources — confirm details with the bill’s official record.
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