Generally revise income tax law

2025 Regular Session

Proposes a broad overhaul of the state's individual income tax law, changing rates, deductions, credits, and filing rules to affect residents' tax liability.

(LC) Draft Died in Process

#taxation--individualincome

Summary of LC 1717: Generally revise income tax law

Overview
- Bill number: LC 1717
- Title: Generally revise income tax law
- Subject: Taxation — Individual income
- Intent (as suggested by title): A broad, comprehensive revision of the state’s individual income tax provisions. The exact policy changes would depend on the final text, which is not provided in the available data.
- Designation: (LC) Draft — indicates a Legislative Counsel draft (preliminary text). Such drafts are typically revised before formal introduction or publication of a final bill text.

Status and timeline
- Introduced: November 20, 2024
- 2024-11-20: Drafter Assigned
- 2024-11-20: Draft On Hold
- 2025-05-27: (LC) Draft Died in Process
- Current status: Died in Process. This indicates the draft did not progress toward final enactment and did not advance to formal consideration during the session or committee review windows.

What the bill would do (high-level expectations based on the title)
- The bill proposes a broad overhaul of the state’s individual income tax law. Because the actual provisions are not provided in the cited data, the specific changes are not known.
- In general, such a revision could involve any combination of:
- Tax rate structure and brackets (e.g., adjustments to marginal rates, brackets, and thresholds)
- Deductions and exemptions (standard/itemized deductions, personal exemptions, and potential new credits)
- Tax credits (earned income credit, child/dependent care credits, education credits, etc.)
- Definitions and conformity (how federal code changes are adopted or decoupled)
- Filing requirements and administration (return forms, withholding, enforcement, penalties)
- Transition provisions (effective dates, grandfathering of prior years, and refund/credit handling)

Who would be affected
- Individual income taxpayers: Any changes to rates, deductions, credits, or filing requirements could alter overall tax liability for residents and potentially part-year or nonresidents.
- Taxpayers at different income levels: Depending on the final structure, low-, middle-, and high-income groups could experience varying impacts.
- Tax preparers and employers: Administrative and withholding changes would affect preparation and payroll processes.
- Revenue and fiscal planning: The state treasury would assess revenue impact and budgetary effects of any changes.

Procedural notes and next steps
- With the draft now listed as “Died in Process,” there is no enacted change from LC 1717.
- If a future version is reintroduced, it would undergo committee review, potential amendments, floor votes, and Executive action before becoming law.
- For the most accurate understanding, consult the full text of any active version and accompanying fiscal notes when available.

Additional resources
- Check the legislative website or docket for LC 1717 for the complete text, fiscal impact statements, and any subsequent actions if a new version is introduced.