2007 House Bill 5195

"Vehicle" bill for possible income tax increase

Introduced in the House

Sept. 7, 2007

Introduced by Rep. Steve Tobocman (D-12)

To increase the state income tax rate from 3.9 percent to 4.6 percent; (as originally introduced, the bill would have just “cleaned up” the income tax statutory language to related to various tax deductions that went into effect in the past).

Referred to the Committee on Tax Policy

Sept. 20, 2007

Substitute offered by Rep. Steve Tobocman (D-12)

To replace the previous version of the bill with one that contains an income tax hike from 3.9 percent to 4.6 percent, but also “tie-bars” the bill to various government reform bills, including House Bills 4799 and 4800, which prohibits “double dipping” by school and government employees who collect pensions while doing work for their public employer; 4975 and 4976, which lengthen the period school employees must work to collect a full pension, and limits granting the usual lifetime health care benefits to those who have not actually worked for 30 years; Senate Bill 546, which requires retired school employees to pay a small portion (10 percent) of the annual premium for the lifetime health care insurance they are granted; and some other bills with minor reforms. The substitute is also tie-barred to a “vehicle” bill for imposing a 6 percent tax on some services. This version was adopted to draw some Republican votes for the tax increase, so that some “vulnerable” Democratic members could avoid voting for it.

The substitute passed by voice vote

Sept. 21, 2007

Substitute offered by Rep. Steve Tobocman (D-12)

To replace the previous version of the bill with one that still contains an income tax hike from 3.9 percent to 4.6 percent, and that “tie-bars” it to various government reform bills. Unlike a previous version this one is not tie-barred to a “vehicle” bill for imposing a 6 percent tax on some services. This was removed in a late-night session to attract the votes of some Republicans who might support the income tax hike were influenced by strong business opposition to the service tax from business groups.

The substitute passed by voice vote

Oct. 9, 2007

Referred to the Committee on Tax Policy