S.22.2-6: Grocery Tax Rebate and Economic Assistance Act of 2022 (PASSED)

[fhtagn]

Be It Enacted by the Legislature of the Southern Region to hereby establish food tax credits and refunds to reduce the burden of inflation upon the Southern citizenry:

SECTION 1. Title and Definition


1. This legislation shall be referred to as the Grocery Tax Rebate and Economic Assistance Act of 2022.

a. Any resident individual who is required to file and who has filed an income tax return shall be allowed a credit against taxes due for the taxpayer, the taxpayer's spouse, and each dependent, For tax years 2015 and after 2022 , the credit is one hundred dollars ($100). For tax years 2023 and after, the credit is one hundred twenty dollars ($120). If taxes due are less than the total credit allowed, the taxpayer shall be paid a refund equal to the balance of the unused credit.

SECTION 2. Implementation

1. A resident individual who is not required to file an income tax return and for whom no credit or refund is allowed under any other subsection of this section shall, subject to the limitations of subsections of this section, be entitled to a refund in the amount provided in subsection (1) of this section.

a. Except as provided in subsection of this section, a credit or refund under this section is only available only if the individual for whom a personal exemption is claimed is a resident of the South.

b. In no event shall more than one (1) taxpayer be allowed a credit or refund for the same personal exemption, or under more than one (1) subsection of this section.

c. In the event that a credit or refund is attributable to any individual for whom assistance under the federal food stamp program was received for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which no assistance was received.

d. In the event that a credit or refund is attributable to any individual who has been incarcerated for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which the individual was not incarcerated.

e. No credit or refund shall be paid that is attributable to an individual residing illegally in the United States.

f. Any part-year resident entitled to a credit under this section shall receive a proportionate credit reflecting the part of the year in which he was domiciled in this region.

g. Any refund shall be paid to such individual only upon his making application therefor, at such time and in such manner as may be prescribed by the state tax commission. The state tax commission shall prescribe the method by which the refund is to be made to the taxpayer. The refunds authorized by this section shall be paid from the refund fund in the same manner as the refunds authorized by  this section.

SECTION 3. Establishment of tax commission


a) The due date, including extensions, of the return required under section 63-3030, Idaho Code, if the applicant is required to file a return; or

b) The fifteenth day of April of the year following the year to which the application relates if the applicant is not required to file a return.

c) A regional tax commission shall provide income tax payers with the irrevocable option of donating credited funds accruing pursuant to this section. Any funds so donated shall be remitted from the refund fund to a cooperative welfare fund, and shall be used solely for the purpose of providing low-income Southerners with assistance in paying home energy costs.

Sponsor: Spark

[Senator-elect Spark]

The purpose of this bill is to lift the burden off of consumers in the South. Food prices are skyrocketing due to inflation and I want to help those who continue to see rising grocery bills.

[President Punxsutawney Phil]

I wholeheartedly endorse this bill.

[Mr. Reactionary]

Section 3 references Idaho code.

As far as generating a budget score, would the sponsor be willing to drop the retroactive tax implications and just have this be a forward tax credit. Thatll make it easier to calculate the cost and figure out budget offsets.

[Mr. Reactionary]

So quick back of the envelope math.

If we drop the retroactive tax credits and assume 100 million eligible recipients x $120 tax credit that means the cost will be $12 Billion. If we drop the credit to $100 that means the cost will be $10 billion. Im trying to figure out some funding mechanisms but we may need to reduce eligibility through means testing among other strategies to pay for this. Ill post some funding ideas when I at least get close.

[Senator-elect Spark]

Be It Enacted by the Legislature of the Southern Region to hereby establish food tax credits and refunds to reduce the burden of inflation upon the Southern citizenry:

SECTION 1. Title and Definition


1. This legislation shall be referred to as the Grocery Tax Rebate and Economic Assistance Act of 2022.

a. Any resident individual who is required to file and who has filed an income tax return shall be granted a tax credit for the taxpayer, the taxpayer's spouse, and each dependent, For tax years 2015 and after 2022, the credit is one hundred dollars ($100). For tax years 2023 and after, the credit is one hundred twenty dollars ($100). If taxes due are less than the total credit allowed, the taxpayer shall be paid a refund equal to the balance of the unused credit.

SECTION 2. Implementation

1. A resident individual who is not required to file an income tax return and for whom no credit or refund is allowed under any other subsection of this section shall, subject to the limitations of subsections of this section, be entitled to a refund in the amount provided in subsection (1) of this section.

a. Except as provided in subsection of this section, a credit or refund under this section is only available only if the individual for whom a personal exemption is claimed is a resident of the South.

b. In no event shall more than one (1) taxpayer be allowed a credit or refund for the same personal exemption, or under more than one (1) subsection of this section.

c. In the event that a credit or refund is attributable to any individual for whom assistance under the federal food stamp program was received for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which no assistance was received.

d. In the event that a credit or refund is attributable to any individual who has been incarcerated for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which the individual was not incarcerated.

e. No credit or refund shall be paid that is attributable to an individual residing illegally in the United States.

f. Any part-year resident entitled to a credit under this section shall receive a proportionate credit reflecting the part of the year in which he was domiciled in this region.

g. Any refund shall be paid to such individual only upon his making application therefor, at such time and in such manner as may be prescribed by the state tax commission. The state tax commission shall prescribe the method by which the refund is to be made to the taxpayer. The refunds authorized by this section shall be paid from the refund fund in the same manner as the refunds authorized by  this section.

SECTION 3. Establishment of tax commission


a) The due date, including extensions, of the return required under section 63-3030, Idaho Code, if the applicant is required to file a return; or

b) The fifteenth day of April of the year following the year to which the application relates if the applicant is not required to file a return.

c) A regional tax commission shall provide income tax payers with the irrevocable option of donating credited funds accruing pursuant to this section. Any funds so donated shall be remitted from the refund fund to a cooperative welfare fund, and shall be used solely for the purpose of providing low-income Southerners with assistance in paying home energy costs.

Sponsor: Spark

Proposing this amendment to the bill.

[fhtagn]

24 hours for objections

[President Punxsutawney Phil]

No objection.

[fhtagn]

Amendment is adopted

[fhtagn]

If no one has anything else to add, motion for a final vote, 24 hours for objections.

[Mr. Reactionary]

If no one has anything else to add, motion for a final vote, 24 hours for objections.

Im not a delegate but I was going to propose a clause or 2 related to financing so that we dont lose over half the rainy day fund to pay for this.

[Mr. Reactionary]

Here is my proposal:

Be It Enacted by the Legislature of the Southern Region to hereby establish food tax credits and refunds to reduce the burden of inflation upon the Southern citizenry:

SECTION 1. Title and Definition


1. This legislation shall be referred to as the Grocery Tax Rebate and Economic Assistance Act of 2022.

a. Any lawful resident individual or household in the Southern Region with a combined income of less than $100,000.00 who is required to file and who has filed an income tax return shall be granted a tax credit for himself and each dependent the taxpayer, the taxpayer's spouse, and each dependent, For tax years 2015 and after 2022, the credit is one hundred dollars ($100). For tax years 2023 and after, the credit is one hundred twenty dollars ($100) per individual and dependent. If taxes due are less than the total credit allowed, the taxpayer shall be paid a refund equal to the balance of the unused credit.

SECTION 2. Implementation

1. A lawful resident individual or household who that is not required to file an income tax return and for whom no credit or refund is allowed under  any other subsection of this section this act shall, subject to the limitations of subsections of this section this act, be entitled to a refund in the amount provided in subsection (1) of this section act.

a. Except as otherwise provided in subsection of this section this act, a credit or refund under this section is only available only if the individual or household for whom a personal exemption tax credit is claimed is a lawful resident of the South.

b. In no event shall more than one (1) taxpayer be allowed a credit or refund for the same personal exemption, or under more than one (1) subsection of this section dependent.

c. In the event that a credit or refund is attributable to any individual or dependent for to whom assistance under the federal food stamp Supplemental Nutrition Assistance Program was received for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which no assistance was received.

d. In the event that a credit or refund is attributable to any individual or dependent who has been incarcerated for any month or part of a month during the taxable year for which the credit or refund is claimed, the credit or refund allowed under this section shall be in proportion to the number of months of the year in which the individual or dependent was not incarcerated.

e. No credit or refund shall be paid that is attributable to an individual residing illegally in the United States.

f. Any part-year resident entitled to a credit under this section shall receive a proportionate credit reflecting the part of the year in which he was domiciled in this region provided he shall have been domiciled herein for at least 183 days of any year.

gf. Any refund shall be paid to such individual only upon his making application therefor, at such time and in such manner as may be prescribed by law the state tax commission. The state tax commission shall prescribe the method by which the refund is to be made to the taxpayer. The refunds authorized by this section shall be paid from the refund fund designated herein in the same manner as the refunds authorized by this section.

SECTION 3. Establishment of tax commission Filing


1. The due date, including extensions, of the return required under this act , if the applicant is required to file a return; or

b) shall be the fifteenth day of April of the year following the year to which the application relates if the applicant is not required to file a return.

c2. A regional tax commission shall provide income tax payers with person eligible to receive a credit or refund shall have the irrevocable option of donating credited funds accruing pursuant to this section act. Any funds so donated shall be remitted from the refund fund to a cooperative welfare fund, and shall be used solely for the purpose of providing low-income Southerners with assistance in paying home energy costs.

SECTION 4. Funding

1. For purposes of PayGo this provision shall only go into effect upon the adoption of a discretionary spending fund with adequate new funds to cover the costs of this act in a separate act.

2. A luxury tax surcharge of 10% on the end-use sales price of any of the following products sold in the Southern Region is hereby levied. All tax monies collected from this tax shall be used to offset the costs of this act.

A. Almonds and almond milk
B. Artichokes
C. Asparagus
D. Brazil Nuts
E. Cherries (sweet or tart)
F. Coconuts
G. Cranberries
H. Hazlenuts
I. Lettuce
J. Macademia nuts
K. Maple Syrup
L. Olives
M. Pineapples
N. Pistachio Nuts

For purposes of this act end-use price shall mean the price paid at the point of sale to a direct consumer, to a restaurant or food preparer that will use a taxed product as an ingredient in a meal or dish to be sold to a direct consumer, or to a food company that will use a taxed product as an ingredient in a product to be sold to a direct consumer.

3. Unless otherwise specified herein, the provisions of this act shall take effect July 1, 2022.

Quick back of the envelope math

Households < $100K = .693 × 100 Million residents

69,300,000 eligible residents x $100 = $6.93 Billion cost

The luxury surcharge tax generates $571.438 Million or 1/14th of this bills costs.

So as long as the pending Sin Tax Bill generates another $6.38 Billion, which it is expected to, this will mean Spark's bill can be funded, provided the above amended version is adopted.

Oh and adding the word "lawful" resident still prohibits illegal aliens.

[fhtagn]

If no one has any issues I'll rescind my motion so we can discuss Reactionary's proposal.

[President Punxsutawney Phil]

If no one has any issues I'll rescind my motion so we can discuss Reactionary's proposal.

I'm fine with you rescinding if you so prefer. It's up to you.

[fhtagn]

I'd like to hear Spark's perspective on this recommendation since it's his bill.

[Senator-elect Spark]

I'd like to hear Spark's perspective on this recommendation since it's his bill.

Having these categories of items for the funding of the rebate is a sound idea. I am in favor of the amendment.

[fhtagn]

I'd like to hear Spark's perspective on this recommendation since it's his bill.

Having these categories of items for the funding of the rebate is a sound idea. I am in favor of the amendment.

I'm going to just assume this is you saying you'll sponsor the amendment and give 24 hours for objections.

[fhtagn]

Amendment is adopted

[fhtagn]

If no one has anything else to add, motioning for a final vote. 24 hours for objections.

[President Punxsutawney Phil]

No objection.

[fhtagn]

A final vote on this bill is now open for 72 hours, or until 24 hours after this has enough votes to pass or fail, or until everybody votes, whichever occurs soonest.

[President Punxsutawney Phil]

Aye

[reagente]

aye

[UlmerFudd]

Aye

[Senator-elect Spark]

Aye