HB3300 SFA #1 Tarr 4-6
Senator Tarr moved to amend the Finance committee amendment on page fifteen, after line fifty-three, by striking out all of section three-a;
On page forty-six, after line one hundred ninety-four, by inserting a new section, designated section twenty-five, to read as follows:
§11-21-25. Sales Tax Relief Credit.
(a) Definitions – As used in this section, the following terms shall have the meaning ascribed to them in this subsection, unless the context in which the term is used clearly requires a different meaning or a specific different definition is provided:
(1) "Household" means the claimant and his or her spouse, if any, living in the same residence, as well any dependent children that may be claimed on the taxpayer’s federal income tax return. The household also includes any persons living in the same dwelling as the claimant and sharing its furnishings, facilities, and accommodation, but does not include bona fide lessees, tenants, or roomers and boarders on contract;
(2) “Household income” means all income received by all persons of a household while members of the household;
(3) “Income” means the sum of adjusted gross income as defined in the United States Internal Revenue Code, the modifications in §11-21-12(b), §11-21-12f and §11-21-12g of this code increasing federal adjusted gross income, and all nontaxable income, including the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash public assistance and relief, not including relief granted under this chapter, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans' disability pensions, all payments received under the federal social security and state reemployment assistance or unemployment insurance laws, nontaxable interest received from the federal government or any of its instrumentalities, workers’ compensation, and the gross amount of loss of time insurance, but not including gifts from nongovernmental sources, food stamps, or surplus foods, or other relief in kind provided by a public agency; and
(4) “Tax year” or “taxable year” means the calendar year used for computing household income under this chapter. A claimant’s tax year is the same period as is covered by his or her federal income tax return.
(b) Refundable Credit – Subject to the requirements and limitations of this section, for tax years beginning on and after January 1, 2022, any resident having a gross household income equal to or less than $35,000 for the tax year, shall be allowed a refundable credit against the taxes imposed by this article equal to the following amounts:
(1) For all residents having a household income of less than $10,000, the amount of refundable credit shall be $350.
(2) For all residents having a household income between $10,001 and $20,000, the amount of refundable credit shall be $200.
(3) For all residents having a household income between $20,001 and $30,000, the amount of refundable credit shall be $100.
(4) For all residents having a household income between $30,001 and $35,000, the amount of refundable credit shall be $50.
(c) One claim per household - Notwithstanding any other provision of this section to the contrary, only one claimant per household per tax year shall be entitled to relief under this section.
(d) Advance Refunds of Credit – The amount of credit which would (but for this subsection) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under this subsection.
(1) In General – Each claimant who would have been an eligible resident based upon their household income in the year preceding the taxable year shall be allowed a prepayment of the credit: Provided, That any claim for prepayment of the credit must be made on or before April 15 of the tax year to which it relates.
(2) Advanced refund amount – For the 2022 calendar year, for purposes of subdivision (1) of this subsection, the advanced refund amount is the amount that would have been allowed as a credit under this section for the 2020 taxable year if this section had applied to such taxable year.
(3) Timing and manner of payments – The Commissioner shall, subject to the provisions of this article, pay any advance refund of credit under the following guidelines:
(i) 25 percent of the amount of prepayment by June 15 of the taxable year;
(ii) 25 percent of the amount of prepayment by September 15 of the taxable year;
(iii) 25 percent of the amount of prepayment by December 15 of the taxable year; and
(iv) 25 percent of the amount of prepayment by March 15 of the year following the taxable year.
(4) Interest not accruable - No interest shall be allowed on any prepayment attributable to this subsection.
(5) Delivery of payments – Notwithstanding any provision of this code to the contrary, the commissioner may certify and disburse refunds using any reasonable commercial means necessary.
(e) The commissioner may prescribe such rules as may be necessary to carry out the purposes of this section.