Prime Sponsor
Last, B.
Position
–
Comments
This bill: amends and enacts defined terms for the Minimum School Program; amends for a five-year period the calculation of the minimum basic local amount and minimum basic tax rate; establishes the weighted pupil unit value tax rate; establishes the equity pupil tax rate; directs the Division of Finance to deposit an amount equal to the proceeds from: (1) the equity pupil tax rate into the Local Levy Growth Account; and (2) the weighted pupil unit value tax rate into the Teacher and Student Success Account; directs the Legislature to annually appropriate money from the Local Levy Growth Account to guarantee local levy increments; directs the State Board of Education to use the appropriation to increase: (1) the number of guaranteed local levy increments to 20, giving first priority to guaranteed voted local levy increments and second priority to guaranteed board local levy increments; and (2) the guaranteed amount for each local levy increment per weighted pupil unit after increasing the number of guaranteed local levy increments; directs a local school board to use funds received from the state local levy guarantee programs for public education purposes; creates the Local Levy Growth Account; creates the Teacher and Student Success Account; modifies the property tax rate cap for the school board local levy to subject all school districts to the same rate cap; repeals the following outdated levies prohibited since January 1, 2012: (1) the board-approved leeway; (2) the capital outlay levy; (3) the additional levy for debt service, school sites, buildings, buses, textbooks, and supplies; and (4) the board leeway for reading improvement; repeals outdated language, including language related to school capital outlay in counties of the first class repealed December 31, 2016; modifies the definition of "certified revenue levy" in the Property Tax Act; modifies the homeowner's and renter's credits; modifies provisions governing notice requirements for a proposed tax increase by the state; addresses the apportionment of business income for income tax purposes by: (1) phasing in a requirement that certain taxpayers use only the sales factor to calculate the fraction for apportioning business income to the state; (2) allowing an optional apportionment taxpayer to choose between a single sales factor and an equally weighted method to calculate the fraction for apportioning business income to the state; and (3) requiring an optional apportionment taxpayer that chooses to apportion business income using the single sales factor method to continue using the single sales factor method of apportionment in subsequent taxable years; provides a method for a taxpayer to determine if the taxpayer is an optional apportionment taxpayer; reduces the state's corporate and individual income tax rates; addresses when an individual is considered to have domicile in this state for purposes of income tax; defines terms; modifies the calculation of the taxpayer tax credit; creates study provisions; provides repeal dates; and makes technical and conforming changes. Details »