The Senate sent House Bill 106, the furlough bill, and House Bill 107, the Tax Reform Act of 2017, to committee for further consideration during a brief Monday morning floor session.
The furlough bill heads to the Judiciary Committee, while the Tax Reform Act of 2017 is double refrenced, first to the Select Committee on Tax Reform, then to Finance.
The purpose of the furlough legislation is to protect state employee benefits such as vacation, healthcare and retirement in the event of a state government shutdown. In its current form, the bill would give backpay to employees upon their return from furlough.
The House version of the Tax Reform Act broadens the base of those who pay the sales tax, lifting the exemptions on a number of services, most notably a telecommunications tax. The bill also eliminates the tax on Social Security benefits for those making less than $100,000 over a three-year period. The legislation includes the elimination of taxes on veterans’ pensions. The bill also increases the personal income tax exemption from the current $2,000 to $2,500 per person for those making under $100,000 a year.
The House bill does not increase the sales tax. It also does not decrease the personal income tax, both of which are key components of the Senate bill, which passed last week.
The Select Committee on Tax Reform will meet at 2 p.m. in 451M
The Senate has adjourned until tomorrow at 9:30 a.m.
