Bill
HB 6465
Raising income thresholds for the state Social Security deduction expands eligibility for retirees and retirement-income households, affecting revenue and tax administration.
HB 6465 — Summary of Proposed Bill
Overview
- Purpose: To increase the qualifying income thresholds for the personal income tax deductions related to Social Security benefits. The bill aims to broaden eligibility for the deduction by raising the income level at which taxpayers qualify.
- Status: Introduced and referred on January 24, 2025 to the Joint Committee on Finance, Revenue and Bonding. No further action listed in the provided information.
- Topic: State income tax deductions tied to Social Security benefits.
Key Provisions (as described by the bill’s title and status)
- Threshold Adjustment: The core provision would raise the income thresholds that determine eligibility for the deduction on Social Security benefits.
- Scope of Deduction: Maintains the existing deduction framework for Social Security benefits under the state personal income tax, but modifies which taxpayers can claim it based on higher income limits.
- Administration: Any changes would be implemented within the state tax code; exact mechanics (e.g., how thresholds are calculated, whether separate thresholds by filing status apply, and any indexing provisions) would be specified in the bill text and accompanying fiscal notes.
- Effective Date: The bill’s text would specify when the changes take effect (e.g., applicable to tax year after enactment or a subsequent year). The provided information does not include these details.
Who is Affected
- Primary beneficiaries: Taxpayers receiving Social Security benefits whose incomes exceed current qualifying limits but would meet the new higher thresholds.
- Potential beneficiaries: Households with retirement income looking to reduce taxable income via the Social Security benefit deduction.
- Tax administration: The Department of Revenue/Tax agency would implement and enforce the new threshold criteria and any related forms or guidance.
Procedural and Timeline Aspects
- Current stage: Ref. to Joint Committee on Finance, Revenue and Bonding (January 24, 2025). No committee report, public hearing, or floor votes listed in the provided material.
- Next steps: Depending on committee action, the bill would need passage by both chambers and signature by the governor (or veto override) to become law. The exact effective date and any transition provisions would be defined in the final bill text.
- Notes: Without the full bill text, specific threshold amounts, indexing rules, and any phase-in or sunset provisions are not specified here.
Fiscal and Policy Implications (high-level)
- Revenue impact: Potentially reduced state revenue due to a larger portion of taxpayers qualifying for the deduction.
- Tax fairness and equity: Broadening eligibility may benefit retirees or households with higher but still modest-to-middle incomes who receive Social Security, depending on current distribution of benefits and income.
- Administrative considerations: Changes could require updated guidance, forms, and compliance checks.
Next Steps for Readers
- Monitor committee hearings and the release of the full bill text for exact threshold values, any indexing, and the proposed effective date.
- Review fiscal notes or analyses (if published) for estimated revenue impact and administrative costs.
Compiled from official sources — confirm details with the bill’s official record.
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