Legislative Session number- 81

Bill Name: HF0002

HF0002Individual income and property tax class rates modified, HMO and nonprofit
insurance premiums tax repealed, health care taxes phased out, education
homestead credit increased, and general education levy reduced.ARTICLE 1INCOME
TAXESSection 1: individual income tax rate schedules modified. Sec. 2: inflation
adjustment of individual income tax brackets provided. Sec. 3: alternative
minimum tax on preference items rate reduced. Sec. 4: tentative minimum tax
reduced. Sec. 5: alternative minimum tax exemption amounts provided. Sec. 6:
adjusted net minimum tax formula modified. Sec. 7: effective date.ARTICLE
2PROPERTY TAX REFORM Sec. 1: class 1a property tax class rate reduction
provided. Sec. 2: class 2a and 2b property tax class rate reductions provided.
Sec. 3: class 3a property tax class rate reduced, and class 3b property tax
rates provided. Sec. 4: class 4a property tax class definition clarified, and
rate reduced; class 4b, 4bb, and 4c property tax class rate reductions provided.
Sec. 5: class 5 property tax class rate reduction provided. Sec. 6: general
education homestead credit maximum increased. Sec. 7: commissioner of children,
families, and learning appropriated money annually for reduction in the
statewide general education property tax levy. Sec. 8: repealer. Sec. 9:
effective date.ARTICLE 3HEALTH CARE TAXES Sec. 1: insurance premiums tax on
health maintenance organizations and nonprofit health service plan corporations
repealed. Sec. 2: health plan company cost containment exempted taxes and
assessments definition clarified. Sec. 3: staff model health plan company
definition provided. Sec. 4: insurance premium tax on self-insured employers
repealed. Sec. 5-9: conforming changes provided. Sec. 10: hospital, surgical
center, provider, and wholesale drug distributor tax reduced. Sec. 11: health
care access fund repealed, and funds transferred. Sec. 12: repealer. Sec. 13:
effective dates.CTH