SUMMARY

This bill provides for a local option sales and use tax and a local option income tax at the same rates as and to replace the state sales and use tax and income tax, 85% of the proceeds of which the municipality would receive, to be approved by municipal referendum. The general purpose aid for local schools that a municipality receives from the State will be reduced by the amount the municipality receives through the local option taxes. If a municipality receives more through the local option taxes than the amount the municipality would have received through the general purpose aid for local schools, then the municipality must reduce property taxes by the excess amount, applied pro rata to all of the taxable property in the municipality.