RELATING TO CAPITAL GAINS.

SB 349 would change how capital gains income is taxed by applying the same tax rate as ordinary income (such as wages) instead of the current preferential rate. This policy directly affects individuals and investors who earn capital gains income, such as from selling stocks or property. The bill’s key mechanism is eliminating the separate, lower tax rate currently applied to capital gains, aligning it with standard income tax rates. This represents a substantive change to the state’s tax code for investment income.