tax credit; increased taxes;
prisoners
HB 2616 states that a person who is sentenced to the custody of the Department of Corrections (DOC) or a county jail is not eligible to claim the state income tax credit in mitigation of increased Transaction Privilege Tax (TPT) and use taxes.
In the 2000 state general election, the voters approved a state income tax credit in mitigation of increased TPT and use tax. The credit is allowed for tax years beginning from and after December 31, 2000. Those eligible for this credit are taxpayers who are not claimed as dependents by other taxpayers and whose federal adjusted gross income is:
§ $25,000 or less for a married couple or a single person who is a head of a household.
§ $12,500 or less for a single person or a married person filing separately.
This tax credit is considered to be in mitigation of increased of increased tax rates. The amount of the credit can not exceed $25 for each person who is a resident of this state and each dependent. Total tax credit per taxpayer’s household cannot exceed $100. If the amount of credit claimed exceeds the income taxes otherwise due, the excess credit is to be refunded to the taxpayer.
· States that a person who is sentenced to the custody of the DOC, federal prison or county jail for at least 60 days is not eligible to claim a credit.
· Makes this bill effective for taxable years beginning December 31, 2002.
· Adds a Proposition 105 and a Proposition 108 clause.
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45th Legislature
Second Regular Session 2 April
12, 2002
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