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Conferees accept House income-tax trigger structure with lower Budget Stabilization Fund target
Summary
Conferees agreed to incorporate the House package for income and privilege tax reductions and formulas tied to State General Fund receipts, with a compromise Budget Stabilization Fund target of 15 percent instead of 20 percent.
Conferees on Committee on Taxation agreed to include the House version of the income- and privilege-tax reduction package (House Bill 02/2018) in the conference package with a single substantive modification: a Budget Stabilization Fund requirement of 15 percent instead of the House's higher target.
The draft language discussed would tie reductions in income and privilege tax rates to State General Fund receipts and include privilege-tax rate floor provisions. Conferees clarified the agreement's fiscal orthodoxies and asked reviser staff to prepare the conference report language.
Why this matters: changes to income and privilege tax structures and a budget-stabilization requirement affect state revenues and the timing or scale of rate reductions. The 15 percent BSF target reduces the legislative funding guardrails compared with a 20 percent target discussed earlier.
Next steps
Staff were instructed to prepare the agreed conference language and to include the agreed 15 percent fund target. The parties indicated they would record an agree-to-disagree on this item and move it forward as part of the overall conference package.
Ending
Conferees directed staff to prepare the conference report language for the income and privilege tax package incorporating the 15 percent Budget Stabilization Fund target.
