|Date Requested:January 13, 2011
Time Requested:01:53 PM
| FUND(S) |
General Revenue Fund
Sources of Revenue
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 exclude federal interest income when applying $8,000 income exclusion available to persons age 65 or older and to persons who are permanently and totally disabled regardless of age and making the change retroactive to tax years beginning after December 31, 2011.
Under the provisions of this bill, tax exempt interest earnings from federal obligations would no longer count against the $8,000 minimum income exclusion for senior citizens or disabled individuals. Passage of this bill would reduce General Revenue Fund collections by roughly $900,000 per year beginning in FY2013.
There would no additional administrative costs.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||-900,000|
3. Explanation of above estimates (including long-range effect):
This bill increases the maximum level of income exclusion by up to $8,000 ($16,000 on joint returns) for senior citizens and disabled individuals who receive tax exempt interest income from federal obligations. Interest from federal obligations would no longer count against the $8,000 minimum income exclusion under the provisions of this bill. Passage of this bill would reduce General Revenue Fund collections by roughly $900,000 per year beginning in FY2013.
There would be no additional administrative costs.