FISCAL NOTE

Senate Bill 44 as introduced would reduce receipts to municipal general funds by an undetermined amount by phasing out, and eventually repealing occupational license taxes based on income that are levied by certain municipalities as follows: (1) capping the rates assessed by municipalities to the rates assessed on January 1, 2021, followed by reducing the rates by an additional minimum of 0.1% annually each October, and repealing the occupational license tax levies once the rate is reduced to zero; and (2) exempting income earned by individuals in police jurisdictions or on property that was annexed by a municipality after January 1, 2021.

In addition, this bill would also provide that no municipality may levy a new occupational license tax or increase their current rate, which could also decrease future potential revenues to municipalities also by an undetermined amount.