| Date Requested:February 23, 2005 Time Requested:02:50 PM |
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| FUND(S) General Revenue Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| General Fund | |||
Legislation creates:
Neither Program nor Fund | |||
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to increase the low-income exclusion for personal income tax.
According to our interpretation, passage of this bill would reduce General Revenue Fund collections by roughly $24.7 million in Fiscal Year 2005-2006 and by roughly $26.9 million per year, thereafter. The bill would increase the low-income earned-income exclusion threshold from $10,000 to $18,000 for single, joint and head of household returns and from $5,000 to $9,000 for married-filing-separate returns. There would be no additional administrative costs to the Tax Department associated with this bill. |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2005 Increase/Decrease (use"-") |
2006 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 0 | 0 | 0 |
| Personal Services | 0 | 0 | 0 |
| Current Expenses | 0 | 0 | 0 |
| Repairs and Alterations | 0 | 0 | 0 |
| Assets | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| 2. Estimated Total Revenues | 0 | -24,700,000 | -26,900,000 |
|
3. Explanation of above estimates (including long-range effect):
This bill would increase the low-income earned-income exclusion threshold from $10,000 to $18,000 for single, joint and head of household returns and from $5,000 to $9,000 for married-filing-separate returns. The change would benefit up to 118,000 taxpayers at a cost of roughly $26.9 million per year to the General Revenue Fund.
There would be no additional administrative costs to the Tax Department associated with this bill. |