SB409 SFA Karnes 3-28 #2

Adkins 7913

Senator Karnes moved to amend the bill on page twelve, after section twenty-six by inserting the following:

ARTICLE 13DD. FIXED INCOME CREDIT FOR LOW INCOME SENIOR CITIZENS.

§11-13DD-1 Fixed income credit for low income senior citizens.

For the tax years beginning on and after January 1, 2017, any resident of this state who is a low income senior citizen shall be allowed a credit equal to the adjusted credit amount determined in this article.

§11-13DD-2. Procedure for claiming credit; Limitation of amount paid.

(a) The credit available under this article may be claimed each year, and payment of the same requested by a low-income senior citizen, by filing, within ninety days following the filing of his or her federal income tax return for the year, a claim for credit on forms furnished by the state Tax Commissioner who shall process a requisition for remittance by the State Treasurer of the correct amounts of credit shown on properly completed and filed claims within the same time and according to the same procedures, including the payment of applicable interest, as provided in §11-10-14c of this code for refunds of personal income tax.

(b) No person may receive a credit pursuant to this section in excess of $200: Provided, That any person entitled to the credits against personal income tax authorized in sections twenty-one, twenty-two or twenty-three of article twenty-one of this chapter, may also receive the credits authorized by this article. The maximum amount of the credit authorized by this article shall be reviewed annually by the Legislature to determine if an adjustment is necessary.

(c) Due to the administrative cost of processing, the credit authorized by this section may not be paid if the amount of the credit is determined to be less than $10.

§11-13DD-3. Definitions.

(a) For the purposes of this article, the term “adjusted credit amount” shall mean the amount which is equal to one percent of the person’s adjusted gross income for the year, reduced by four percent of that amount for every one percentage point by which such person’s adjusted gross income exceeds one hundred twenty-five percent of the federal poverty guideline applicable to such person as provided in this section.

(b) For the purposes of this article, the term “adjusted gross income” shall have the meaning of that term used in the Internal Revenue Code.

(c) For the purposes of this article, the term "low income" means adjusted gross income for the tax year that is one hundred fifty percent or less of the federal poverty guideline, based upon the number of individuals in the family unit of which the low income senior citizen is a member, all as determined annually by the United States Secretary of Health and Human Services.

(d) For the purposes of this article, the term "low income senior citizen" means a resident of this state whose federal adjusted gross income for the tax year meets the definition of "low income" as defined in this section, and who has attained the age of sixty-five years: Provided, That for all purposes of this article, the term “low income senior citizen” shall also mean and include, as one person, those individuals who file joint federal income tax returns with their spouses, whether one or both such spouses is a low income senior citizen, and whether either or both spouses have attained the age of sixty-five years.

§11-13DD-4. Effective date.