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HD 1635

An Act to create an income tax deduction for municipal and school fees

194th Legislature (2025-2026) Introduced by David Linsky

HD 1635 creates a new state income tax deduction for municipal and public school fees, allowing taxpayers to deduct up to $500/$1,000 to offset rising costs and support local communities.

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Bill Summary · HD 1635

Summary of HD 1635: An Act to create an income tax deduction for municipal and school fees

Overview

This proposed bill, introduced on November 29, 2025, would create a new state income tax deduction for certain municipal and school-related fees paid by taxpayers. The intent of the legislation is to provide financial relief to residents facing increasing costs of living, particularly those with children in public schools.

Key Provisions

  • Allows taxpayers to deduct up to $500 per individual ($1,000 per married couple filing jointly) for the following fees:
    • Municipal trash/recycling fees
    • Public school registration/activity fees
    • Public school transportation fees
  • The deduction would apply to fees paid during the tax year and would be claimed when filing state income taxes.
  • The deduction would be available regardless of whether the taxpayer itemizes deductions or claims the standard deduction.

Impact

  • This bill would primarily benefit middle-income families and individuals who pay municipal fees and have children enrolled in public schools.
  • It is estimated the deduction would reduce state income tax revenue by $75-100 million per year.
  • Supporters argue it will help offset the rising costs of living and make it more affordable for families to participate in their local communities and public education system.
  • Critics contend the deduction is too narrow in scope and that a broader approach to reducing the tax burden on residents may be warranted.

Timeline

If passed, the new income tax deduction would take effect for the 2026 tax year and be available for fees paid starting January 1, 2026. The deduction would then be available in subsequent tax years unless altered or repealed by the legislature.

Compiled from official sources — confirm details with the bill’s official record.

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