Income tax, state; reduces top marginal individual tax rate. (HB2381)

Introduced By

Del. Ben Cline (R-Amherst) with support from co-patron Del. Mark Cole (R-Fredericksburg)

Description

Individual income tax rate. Reduces the top marginal individual income tax rate, currently 5.75 percent, whenever an individual income tax credit expires. The 5.75 percent rate would be reduced by an amount that generates approximately the same amount of additional annual revenue anticipated to be received from the expiration of the credit. The Tax Commissioner would determine the amount of the reduction rounded to the nearest 0.05 percent. The adjusted tax rate would become effective beginning with the taxable year immediately following the first taxable year for which the credit is no longer allowable. If the 5.75 percent rate is ever reduced to a 0.00 percent rate for a taxable year, then the 5 percent marginal income tax rate would be imposed on all taxable income in excess of $5,000. Currently, the 5 percent marginal income tax rate is imposed on income in excess of $5,000 but not in excess of $17,000. The provisions of the bill would become effective beginning with the 2015 taxable year. Read the Bill »

Outcome

History