June 13 – JFC Wraps Up Budget Votes With Tax Cut Plan

JFC reconvened on June 13 for the last of its votes on the 2019-21 state budget: taxes. The JFC-approved tax plan includes a $322 million middle class tax cut, with the majority of the credit going to individuals with incomes of $150,000 or less. The motion (Motion #150), passed 12-4 along party lines, also includes vapor products in the definition of tobacco products and impose an excise tax on vapor solution effective October 2019.

The committee declined to move forward several of the governor’s tax proposals including:

  • Increasing the refundable portion of the research and development tax credit from 10 percent to 20 percent.
  • Creating a childcare tax credit, similar to the federal version.
  • Creating a 5 percent tax credit for energy efficiency and renewable energy generation.

The committee had also previously removed the governor’s proposal to limit the manufacturing and agriculture tax.

Finally, the committee passed Motion #999, the omnibus wrap-up motion passed by JFC in every budget. In the past, the 999 has often included an assortment of provisions – both policy and appropriations – that the committee had not yet voted on in previous executive sessions. However, this session’s 999 motion only adopted the substitute amendment based on the committee’s previous actions and recommend passage. The committee approved the amended version of the budget 12-4 along party lines.

 

  • Happy birthday, America! The Hamilton Consulting Group wishes everyone a safe and happy Independence Day.