If federal law is changed to allow the collection of state sales taxes on out-of-state retailers (the Marketplace Fairness Act), the 2013-15 state budget requires revenue generated from this source be automatically used to further lower the state income tax brackets.
If the federal law was enacted, the state Department of Revenue (DOR) would determine how much additional sales tax revenue was collected from this source during the first year following the initial collection of the new revenue.
After estimating the amount of additional sales tax revenue, DOR would determine how much the individual income tax brackets could be reduced in the following tax year so that the state alternative minimum tax (AMT) would be eliminated and income taxes would be cut by an amount equal to the additional sales tax revenue. The individual income tax rate reductions would be calculated using a proportion of the share of gross tax attributed to each of the tax brackets in effect during the most recently finished tax year.
Finally, DOR would certify the revenue estimates and rate reductions to DOA, the Governor, and Legislature. The elimination of the AMT and the new reduced tax rates would take effect in the tax year following after the certification by DOR.
Additional Income Tax Cuts if the Marketplace Fairness Act is Adopted
Share:
LOOKING FOR MORE NEWS?
Nick Novak
For more information or to schedule an interview, please contact
Nick Novak | Vice President Communications & Marketing | 608.258.3400
NEWS
Related Posts
WMC Opens Nominations for Business Friend of the Environment Awards Program
Nick Novak
April 22, 2024
MADISON – Wisconsin Manufacturers & Commerce (WMC) – the combined state chamber and manufacturers’ association – opened nominations for its annual Wisconsin Business Friend of
Scott Manley on Biden Administration’s New Emission Standards
Kristen Nupson
April 5, 2024
https://www.youtube.com/watch?v=NDqEr0VTJoE After the announcement of the Biden Administration’s new emission standards being applied to long-haul and large vehicles, WMC’s Scott Manley joined Vicki McKenna to
WMC Disappointed in Superior City Council Vote Opposing Affordable & Reliable Energy Project
Nick Novak
April 4, 2024
MADISON – The Superior City Council denied local approvals on Wednesday for the Nemadji Trail Energy Center (NTEC), which would play a critical role in
ICYMI: Ron Wanek Defends Free Enterprise, Promotes Community Stewardship During Manufacturing Hall of Fame Induction
Nick Novak
March 19, 2024
Ashley Furniture Industries Founder Becomes First Modern-Era Inductee, Joining 78 Other Wisconsin Titans of Industry MADISON – Wisconsin Manufacturers & Commerce (WMC) – the combined