The four bill budget package (SB 150, SB 152, SB 523 and SB 848) passed the Senate this morning, with several provisions impacting employers. Individual income tax brackets will see a .25% increase for most taxpayers, and a flat tax on all income of 5.75% for individuals reporting incomes above $500,000.
The raid of employers’ funds in IWIF will initially be $50 million, but could grow to twice that amount after a study performed later this year. We thank Sen. Allan Kittleman (R-Dist. 9) for a spirited floor debate attacking the raid, and offering three amendments that would have protected employers’ money in IWIF. Unfortunately the amendments were rejected on votes of 13-33, 10-36, and 10-33.
The Senate action also imposes sales tax collection responsibility on certain out of state vendors with in-state affiliates, and expands the county recordation tax to indemnity mortgage deeds of trust (IDOTs). See a recap of Senate budget action.