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ANALYSIS OF PROPOSED LEGISLATIVE RULES

Agency: State Tax Division

Subject: Personal Income Tax Low Income Exclusion, 110CSR21.1

PERTINENT DATES

Filed for public comment: July 9, 1996

Public comment period ended: August 8, 1996

Filed following public comment period: August 16, 1996 Filed LRMRC: August 16, 1996

Filed as emergency:

Fiscal Impact: None

ABSTRACT

The proposed rule is new. The following is a section by section synopsis of the proposed rule.

Section 1 is the standard general section, setting forth the scope, authority, filing date and effective date of the proposed rule. It also incorporates by reference several Tax Division rules.

Section 2 defines terms.

Section 3 provides that eligible taxpayers may deduct earned income from federal adjusted gross income as provided for in Section 4 of the rule.

Section 4 sets forth the maximum amounts of earned income that an eligible taxpayer may deduct from federal adjusted gross income as these amounts are set forth in the statute.

Section 5 states that an eligible taxpayer is subject to the withholding of taxes from his or her wages unless he or she is exempt from withholding under the statute.

Section 6 states that an eligible taxpayer who is required to file a return under the statute must file a return and an eligible taxpayer who is not required to file a return under the statute is not required to file one by virtue of this rule.