WeVote
Log In

Bill

Bill

A 5377

Relates to calculation of franchise tax on businesses with a business income base over five million dollars

2025 Regular Session Introduced by Emily Gallagher and 3 co-sponsors

Bill A 5377 adjusts franchise tax calculations for businesses earning over $5 million, aiming for a fairer tax structure based on income levels.

REFERRED TO WAYS AND MEANS
0
WeVote Research Nonpartisan
Bill Summary · A 5377

Summary of Bill A 5377

Bill Information

  • Bill Number: A 5377
  • Title: Relates to calculation of franchise tax on businesses with a business income base over five million dollars
  • Status: Referred to Ways and Means
  • Introduced: February 13, 2025
  • Classification: Bill

Purpose and Intent

Bill A 5377 aims to amend the current framework for calculating franchise tax for businesses that report a business income base exceeding five million dollars. The intent of this legislation is to ensure a fairer tax structure for larger businesses, potentially adjusting the tax burden based on income levels.

Key Provisions

  • Franchise Tax Calculation: The bill proposes changes to how the franchise tax is calculated specifically for businesses with a business income base over $5 million.
  • Income Threshold: The legislation sets a clear threshold of $5 million, indicating that only businesses exceeding this income level will be subject to the revised tax calculations.
  • Adjustment Mechanism: While specific details on the adjustment mechanism are not provided in the summary, the bill implies that there will be a new formula or method for determining the tax owed by qualifying businesses.

Who Would Be Affected

  • Businesses: The primary group affected by this bill includes larger businesses with a business income base exceeding $5 million. These businesses may experience changes in their tax obligations as a result of the new calculation method.
  • State Revenue: The bill could also impact state revenue, depending on how the changes to the franchise tax calculation affect overall tax collections from these businesses.

Procedural Aspects

  • Legislative Action: As of February 13, 2025, the bill has been referred to the Ways and Means Committee for further consideration. This is a critical step in the legislative process, as the committee will review the bill and may propose amendments or changes before it is brought to the floor for a vote.
  • Related Bills: Bill A 5377 has a companion bill, S 3943, which may address similar issues or provide additional context to the proposed changes in franchise tax calculations.

Conclusion

Bill A 5377 represents a significant legislative effort to reform the franchise tax calculation for larger businesses in the state. By focusing on businesses with a business income base over $5 million, the bill seeks to create a more equitable tax system that reflects the income levels of these entities. The outcome of this bill will depend on the discussions and decisions made within the Ways and Means Committee and subsequent legislative actions.

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

Sign in to ask a question.