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Senate advances but then tables retirement-exemption bill over $20M fiscal concerns
Summary
House Bill 50, designed to eliminate a marriage penalty for retirement-income exemptions for seniors, passed to third reading but was immediately tabled after senators raised a roughly $20 million long-term impact to the Uniform School Fund.
House Bill 50, described by sponsor Sen. Bramble as correcting a 'marriage penalty' in retirement-income exemptions for seniors, advanced on the Senate floor but was tabled for fiscal reasons on Feb. 5.
Bramble said the bill raises parity thresholds so married senior taxpayers would be treated the same as two single taxpayers for retirement-income exemptions; in current law the exemption phases out sooner for married filers. "This bill brings parity between married individuals and single individuals," Bramble said, adding the measure had unanimous committee backing.
Sen. Steele and others questioned the fiscal consequences. The sponsor and others agreed the long-term effect could be roughly a $20 million reduction to the Uniform School Fund; Bramble said the bill is unlikely to be funded this year but is intended to highlight an inequity. Sen. Valentine argued the problem was real but noted it could not be solved without identifying the funding.
The Senate first voted to move HB50 to the third-reading calendar (clerk recorded 22 aye votes, no nays, 7 absent). Immediately thereafter, Sen. Valentine moved to table HB50 on third reading because of its fiscal impact; the chair ruled the motion passed and the bill was tabled.
Senators said the fiscal impact must be resolved before the bill can move further in this session.
