We have had a lot of activity over the last couple weeks on our budget priorities. We are also monitoring additional items (other tax reductions, etc.) that other lobbying groups are attempting to get placed within the budget.
Commercial and Agricultural Loan Tax Exemption
We have had 4 meetings with the governor’s office and Department of Revenue recently. DOR has provided us with fiscal estimates and technical language changes to our amendment proposal. As you recall, our plan is to exempt from income tax net revenue generated from commercial and ag loans under $10mil. The initial fiscal estimate we received was this would cost the state $55 mil/annually.
This revenue number is quite high and almost double what we had estimated ourselves. As such, we have had two additional concepts drafted:
- Exemption for revenue generated from loans of $5mil or less
- Exemption for revenue generated from loans of $2.5mil or less in tax year 2018, then $5mil every year after.
Thanks to everyone who participated at WBA's Capitol Day, we have momentum building for this issue with the governor and legislative leadership.
Overall, the Joint Finance Committee has voted on most of the non-controversial departments within the budget. This still leaves the more difficult decisions over taxes, education funding, and transportation. The state fiscal year ends June 30th.