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S.F. No. 11 - Clothing Sales Tax Exemption Repeal; Sales Tax Rate Modification; Income Tax Credit (As Proposed to be Amended by the A-1 Amendment)
 
Author: Senator Ann H. Rest
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: January 15, 2013



 

Section 1.  Clothing sales tax credit.  Provides a refundable credit against income tax for eligible filers of $60 for a married couple filing jointly, $30 for all other filers, $30 for the first dependent claimed, $15 for the second and third dependent, $10 for the fourth, and $5 for any subsequent dependent.  The credit is subject to income limitations of a $10 reduction for every $1,000 of income in excess of 200 percent of federal poverty guidelines.

Sections 2 and 3.  Sales tax rate modifications.  Reduces the general sales tax rate from 6.5 percent to 6.158 percent, and the legacy fund sales tax rate from .375 percent to .352 percent.

Section 4.  Lottery in lieu tax.  Removes the reference to the statutory general sales tax rate to keep the lottery in lieu tax rate constant at 6.5 percent.

Section 5.  Repealer.  Repeals the exemption for sales tax on clothing.

Effective for sales and purchases made after June 30, 2013.

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