We know there is widespread anticipation and concern regarding the new $2 billion business tax being promoted by legislative leadership.
Thursday evening, the detailed plan was finally made public.
At a high level, it is a 0.49% gross receipts tax with a 25% deduction for either business inputs or labor costs, whichever is greater. The tax applies to all business entities with gross sales in excess of $1 million.
Although this is a new 25-page tax bill that undoubtedly has many complexities, our understanding is that legislative leadership intends for the process to move quickly. There may be limited opportunity for input or to amend the bill.
In another area of concern, we also believe that the Governor/Governor’s office will be presenting her PERS pension reform package today at the noon hearing for Ways & Means Capital Construction subcommittee. We have reason to believe that a raid on SAIF resources and reserves will be a part of that discussion, but the particulars are not clear. We also anticipate their will be other fund “sweeps” to help buy down escalating PERS rates, particularly for schools.