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LC 4053

Generally revise laws related to state revenue

2025 Regular Session

LC 4053 - Generally Revise Laws Related to State Revenue OverviewBill Number: LC 4053 Title: Generally Revise Laws Related to State Revenue Status: (LC) Draft Died in Process In

(LC) Draft Died in Process
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Bill Summary · LC 4053

LC 4053 - Generally Revise Laws Related to State Revenue

Overview

Bill Number: LC 4053
Title: Generally Revise Laws Related to State Revenue
Status: (LC) Draft Died in Process
Introduced: December 15, 2024

Purpose and Intent

This draft legislation aims to make broad changes to the state's revenue laws and systems. The primary goals are to simplify the tax code, broaden the tax base, and increase overall state revenue to fund critical public services and infrastructure. The bill's sponsors argue that the current revenue framework is overly complex, contains numerous loopholes, and does not generate sufficient funds to meet the state's growing needs.

Key Provisions

  • Income Tax Reform: Consolidate the current multi-tiered personal income tax structure into a flat 5.5% rate, eliminate most deductions and credits, and raise the standard deduction.
  • Sales Tax Expansion: Expand the state sales tax to cover additional services like legal, accounting, and certain healthcare services. Increase the general sales tax rate from 4% to 5.25%.
  • Corporate Tax Changes: Reduce the corporate income tax rate from 6.5% to 5%, but eliminate most exemptions and deductions to broaden the tax base.
  • Property Tax Adjustments: Increase the residential property tax assessment ratio from 80% to 90% of market value. Provide a $5,000 homestead exemption for owner-occupied homes.
  • Excise Tax Increases: Raise taxes on tobacco, alcohol, and fuel by 10-15% to generate additional revenue.

Affected Parties and Impacts

The proposed changes would impact both individual taxpayers and businesses across the state. Most residents would see their overall tax burden increase, especially higher-income individuals who would pay more under the flatter income tax structure. Businesses, particularly in the service sector, would face higher sales tax obligations. However, the corporate tax rate reduction and property tax adjustments could provide some offsetting benefits for companies.

Procedural and Timeline Considerations

This legislation is currently in the draft (LC) stage and has not been formally introduced. As a result, it did not advance during the most recent legislative session and has effectively "died in process." The bill's sponsors may choose to revise and reintroduce it in a future session, but its current status indicates it lacks sufficient political support to move forward at this time.

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

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