By State Affairs
A new report from budget analysts at the state Capitol says conforming to federal tax policy may have less of an impact than lawmakers originally thought at the start of the legislative session.
The Joint Legislative Budget Committee’s May fiscal highlight report says conformity may have less of a revenue impact after collecting tax filing data through April. At the start of session, the JLBC estimated conformity would decrease state revenue by $1.15 billion over three years.
“Refunds have not grown as much as anticipated. Some taxpayers, however, may have deferred their tax filing until after the passage of the conformity legislation,” JLBC staff wrote in the report.
It’s unclear how much of an impact tax conformity will have. The JLBC will continue to monitor tax impacts and some form of conformity legislation is expected to pass with the state budget that lawmakers will be finalizing in June.
