SB 64

Under current law, an individual income tax personal exemption exists in the

amount of $700 for each taxpayer who is required to file an income tax return and

$700 for the taxpayer's spouse, except if the spouse is filing separately or as a head

of household. A taxpayer may also claim a $700 exemption for each dependent for

whom he or she is entitled to claim an exemption under the Internal Revenue Code.

In general, an additional exemption of $250 may be claimed by a taxpayer, and

spouse, who has reached the age of 65 before the close of the taxable year to which

his or her tax return relates.

This bill increases the additional exemption that may be claimed by a taxpayer

who reaches the age of 70 or 75 before the close of the taxable year to which his or

her tax return relates. Under the bill, in general, an additional exemption of $300

may be claimed by a taxpayer, and spouse, who has reached the age of 70 before the

close of the taxable year to which his or her tax return relates and an additional

exemption of $350 may be claimed by a taxpayer, and spouse, who has reached the

age of 75 before the close of the taxable year to which his or her tax return relates.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.