House and Senate negotiators have agreed on a big tax cut package, that includes both income tax and property tax relief.
As approved by a conference committee, reworked House Bill 1158 would reduce existing income tax brackets from five to three, eliminating income tax on that lowest bracket – for single filers making less than $44, 725 and married couples less than $74,750. The next highest bracket would pay 1.95 percent, and the top bracket would pay 2.5 percent.
On the property tax side, homeowners would be able to claim a $500 credit on their primary residence, beginning in 2024. It also expands the homestead property tax credit.
The conference committee rejected a proposal to lower property tax by “buying down” the mill rate charged by local schools.
"We came into this session with one of the main goals to provide tax relief," said Sen. Jordan Kannianen (R-Stanley), chairman of Senate Finance and Taxation. "There have been a lot of different proposals, a lot of discussion on what that may look like. So now we have this package, and we believe that, even if it doesn't make everybody happy, there is still something in here for everybody to like."
The bill comes with a $515 million price tag.