Capital Gains Tax

Subject Capital Gains to the 5% Interest and Dividends Tax

Issue Overview: HB 664 requires taxation of capital gains under the interest and dividends tax. The bill also increases the standard exemption under the interest and dividends tax to $5,000 from $2,400. The Department of Revenue Administration estimates HB 664 would increase state general fund revenue by $75.2 million in 2010 if the tax were in effect for that tax year.

NFIB Position: We oppose this tax, which is both hugely expensive and paves another brick on the road to a state income tax.

Issue Status: HB 664 is currently in the House Ways & Means Committee.