SUMMARY:  LC 34 4535

This bill, called the More Take Home Pay Act of 2015, phases in a repeal of a number of exemptions, lowers the income tax to 4%, increases the sales tax to 5%, and adds some items to those that are taxable. The bill:

• reduces income tax rate to 4% over a three year period
• keeps itemized deductions and personal tax exemptions
• raises the sales tax to 5%
• phases in a grocery sales tax over a four year period to 5% (food stamps exempt)
• implements a communications service tax (state telecom - 5%; state cable - 5%; state direct satellite - 7%; local telecom - 1.25%; school telecom - .075%; local cable - 2%)
• increase cigarette tax over three years to $.65. 

Click here for the anticipated effect of this change on a family. 

EFFECTIVE DATE:  Upon approval by the General Assembly and Governor.