Plain English Breakdown
The official source text repeats itself with conflicting details: one section lists four new rates (1%, 3%, 5%, or 7%), while another mentions only a change from 4% to 3%. The fact-check relies on the more detailed list of four rates but notes this inconsistency.
AB-1219: Changes to Personal Income Tax Rates
For taxable years from January 1, 2025, through December 31, 2029, this bill lowers personal income tax rates by replacing the current percentages of 2%, 4%, 6%, and 8% with new lower rates.
What This Bill Does
- Revises state personal income tax rates for taxable years beginning on or after January 1, 2025, and before January 1, 2030.
- Imposes new tax rates of 1%, 3%, 5%, or 7% instead of the previous rates of 2%, 4%, 6%, or 8% on specified taxable income.
Who It Names or Affects
- Individuals who pay personal income tax in the state during the years between January 1, 2025, and December 31, 2029.
- Taxpayers whose income falls into brackets subject to these revised rates.
Terms To Know
- Taxable year
- The specific time period used to calculate how much tax a person owes, here defined as years starting on or after January 1, 2025, and before January 1, 2030.
- Income tax rate
- The percentage of taxable income that must be paid to the government under this bill's new structure.
Limits and Unknowns
- The official text does not list the specific dollar amounts for each income bracket.
- It is unclear if these lower rates will continue after December 31, 2029.
- The source material contains conflicting descriptions of the rate changes in different sections.