FISCAL NOTE

Senate Bill 18 as introduced would allow a taxpayer who is 65 years old or older to exempt from income tax $10,000 of the distributions from a defined contribution deferred compensation plan, up to the caps set by this bill. Beginning with Tax Year 2023 the maximum exemption amount would be $5,000 and would increase to a maximum of $10,000 in Tax Year 2024.

According to the Department of Revenue, this bill would decrease receipts to the Education Trust Fund by a maximum of ($25,000,000) in FY 2024 and by a maximum of ($40,000,000) in FY 2025 and each fiscal year thereafter.

As amended and reported by the Committee on Finance and Taxation Education, clarifies that the provisions of this bill applies to any retirement income that is currently taxable.