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Committee advances House Bill 860 to exclude overtime from state income tax after 6-3 vote
Summary
The Special Committee on Tax Reform recommended a do-pass on House Bill 860 by a 6-3 vote. Supporters called the measure a targeted tax cut; opponents said it would complicate tax fairness and carry a significant fiscal cost, per a fiscal note referenced in committee.
The Special Committee on Tax Reform voted 6-3 to recommend a do-pass on House Bill 860, which would exclude overtime pay from the state income tax, members said.
Opponents said the change would carve out a portion of income and questioned the fiscal impact. Representative Strickler announced he would vote no, saying, "I just think the market forces work fine for encouraging overtime as it is time and a half double time." He also referenced the fiscal note, saying the committee had "forgotten what the amount was but the fiscal note was pretty high."
Senator Butts and Representative Pucci raised points about uniform treatment of income, with Butts noting concerns about salaried employees who may be exempt from overtime. Representative Simmons, who spoke in favor of the broader tax agenda and carryover proposals, framed the exemption as a step toward broader tax relief: "Any kind of tax cut is a dynamic tax cut. It's not a flat line that comes out of revenue ... it actually can go back into the economy," he said.
Chair Coleman called the roll after discussion. The committee recorded six ayes and three nos and moved the bill forward.
Committee members did not identify a specific dollar figure in the transcript for the fiscal note; the cost was described only as "pretty high." Debate focused on principles — fairness, treatment of salaried versus hourly workers, and budget offsets — rather than programmatic implementation details.
Votes at a glance: House Bill 860 — do-pass recommendation, 6 ayes, 3 nos.
