H5407

Report on initiative petitions to reduce state personal income tax rate and limit tax collection growth.

The report from the Special Joint Committee on Initiative Petitions discusses two petitions: one to reduce the state personal income tax rate from 5% to 4% and another to limit state tax collection growth and return surpluses to taxpayers. The committee found that these petitions, if enacted, would significantly reduce state revenues, limit reserves, and trigger refunds after recessions. The income tax reduction would result in a projected loss of over $5.3 billion in state revenues in the first full fiscal year, disproportionately benefiting high-income earners.