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LC 2316

Generally revise tax laws

2025 Regular Session

LC 2316 - Generally Revise Tax Laws OverviewBill Number: LC 2316 Title: Generally Revise Tax Laws Status: (LC) Draft Died in Process Introduced: December 08, 2024 Purpose and In

(LC) Draft Died in Process
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Bill Summary · LC 2316

LC 2316 - Generally Revise Tax Laws

Overview

Bill Number: LC 2316
Title: Generally Revise Tax Laws
Status: (LC) Draft Died in Process
Introduced: December 08, 2024

Purpose and Intent

This draft legislation aims to make broad changes to the state's tax code, with the primary goals of simplifying the tax system, closing loopholes, and increasing overall tax revenue. The bill's sponsors argue that the current tax structure is overly complex, contains numerous exemptions and deductions, and fails to generate sufficient funds for critical public services.

Key Provisions

  • Consolidates the state's personal income tax brackets from 5 to 3, with a top marginal rate of 6.5%
  • Eliminates most itemized deductions, including for mortgage interest, charitable contributions, and state/local taxes paid
  • Increases the standard deduction for individual filers from $12,000 to $15,000, and for joint filers from $24,000 to $30,000
  • Imposes a new 2% tax on the assessed value of all residential and commercial real estate, with limited exemptions
  • Raises the state sales tax rate from 4% to 5.5%, while expanding the base to include more services
  • Establishes a new 3% tax on gross receipts for businesses with annual revenue over $1 million

Affected Parties and Impacts

The proposed changes would have widespread impacts on both individual taxpayers and businesses across the state. Taxpayers with high incomes, valuable real estate, and significant itemized deductions would likely see their overall tax burden increase. Conversely, lower and middle-income individuals may benefit from the higher standard deduction. Businesses, especially larger firms, would face higher taxes through the new gross receipts levy. State and local governments are expected to see a net increase in tax revenue, which proponents argue could fund improvements to education, infrastructure, and social services.

Procedural and Timeline Considerations

This legislation is currently in the draft stage and has not been formally introduced. As an LC (Legislative Council) bill, it was developed by legislative staff but does not yet have a sponsor. The bill would need to be introduced, referred to a committee, and pass both chambers of the legislature before being sent to the governor for signature or veto. Given the broad and controversial nature of the proposed changes, it is unclear whether this bill will advance through the legislative process in its current form.

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

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