5.__Rounding.__Adjustments in tax rates arising pursuant to this section are rounded to the nearest 1/10 of a percent, and the total dollar amount of the tax on taxable income equal to the lower limit of the income brackets is rounded to the nearest dollar.

SUMMARY

This bill is a revised version of a revenue targeting program passed by the 117th Legislature and repealed by the 118th Legislature.

This bill creates a procedure by which individual income tax rates are reduced periodically until they are 20% less than the 1998 rates, without reducing the anticipated receipt of revenue. Whenever the actual amount of tax revenue exceeds the anticipated amount of tax revenue, the State Tax Assessor is directed to reduce the income tax rates by an amount based upon the excess revenue, not to exceed a 20% reduction in current tax rates.