Proposes a constitutional amendment relating to taxation

The baseline year for calculating tax cuts changed from a fixed fiscal year ending June 30, 2025, to a baseline based on net revenue collections as of January 1, 2027.

The definition of 'Net general revenue collections' was broadened from collections net of refunds to 'all revenue deposited into the general revenue fund less refunds'.

The method for calculating inflation changed to use a July 1 to June 30 period instead of September 1 to August 31.

A new provision requires political subdivisions (local governments) to lower property tax levies or earnings tax rates to offset revenue gained from expanded sales taxes.

A new clause states that if tax cuts fail to eliminate the income tax by 2032, no further annual revenue adjustments will be made.

A new subsection clarifies that the zero-tax rule does not apply to earnings taxes imposed by local political subdivisions.

The bill header was updated to reflect the 'PERFECTED' status, changing the identifier from 'HCS' (House Committee Substitute) to '6854H.02P'.

The target date for eliminating the individual income tax was set to January 1, 2032, replacing the previous open-ended 'on or after 2031' language.

Automatic annual tax rate reductions were added, where the rate drops by 0.01% for every $20 million in net revenue growth over a 2025 baseline.

New definitions were introduced for 'Net general revenue collections' and 'Rate of inflation' to standardize how the tax cuts are calculated.

Provisions regarding the expansion of sales and use taxes to new services were removed, likely due to the inclusion of the second resolution.

The tax elimination rule now explicitly applies a zero percent rate for any year where the calculated rate would fall below 1.4%.