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FISCAL ISSUES

Senate Bill 320 (Act No. 1491) - Senior Homestead Exemption

bulletFreezes homeowners tax assessments for those 65 years of age and older that have an annual gross income of less than $60,000 upon application by homeowner bulletConstitutional amendment bulletEffective upon voter approval in the 1998 Congressional primary election

House Bill 1593 (Act No. 818) - Inheritance Tax Phase Out

bulletPhases in a reduction of the state's inheritance tax over a seven year period bulletPhase in was included to soften the impact of the tax revenue loss to the state bulletIt is estimated this will result in a $50 million reduction in state revenue bulletTax eliminated by July 1, 2004 when a succession is judicially opened within nine months of the death of decedent

House Bill 2368 (Act No. 1454) - Inheritance Tax

bulletExempts the first $100,000 of an inheritance from penalty and interest when an heir fails to file a state inheritance tax return or files late bulletMany residents wait until both parents die to file, subjecting them to penalties and interest bulletEffective July 1, 1998

House Bill 873 (Constitutional Amendment) & Senate Bill 1387 (Enabling Legislation) - Budget Stabilization Fund (Rainy Day Fund)

bulletFund established in the State Treasury bulletFunds received from: bullet25% of nonrecurring revenues bulletMineral revenue in excess of $750 million bulletInterest earnings from the account bulletMoney in excess of the expenditure limit of the state general and dedicated funds bulletOther money appropriated by the Legislature bulletFund's balance is capped at 4% of the state's total revenues for the previous fiscal year bulletRemaining nonrecurring revenue may be used to pay off state retirement systems debt, reduce state debt and fund construction projects bulletFund use is limited to one-third of its balance bulletThe fund can only be used to eliminate a projected deficit in the current fiscal year or a projected revenue shortfall for the next fiscal year bulletFund use must be approved by two-thirds of the Legislature bulletHouse Bill 873 became Act No. 1501, effective upon voter approval in the 1998 Congressional primary election bulletSenate Bill 1387 became Act. No. 1149; provisions relative to the Rainy Day Fund become effective upon approval of the amendment

 

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