A boost in state tax collections combined with federal COVID relief assistance is expected to add up to a revenue windfall that’s far enough beyond the rate of inflation.
That would trigger an income tax rate rollback under a 2015 state law. State Treasurer Rachel Eubanks asked for a formal legal opinion on the duration of a tax cut if that happens.
The attorney general’s ruling: A *one-time* windfall means a *one-time* tax cut before the state income tax rate returns to four-point-two-five percent.
Nessel said “the statute provides temporary relief based on temporary circumstances.” Republicans and anti-tax groups are crying “foul.” A legal challenge appears likely.
