Stelly Plan In Action

Posted on January 27, 2009

The first of 2009 initiates is the Stelly tax repeal. The Stelly Plan eliminates sales tax on food, drugs and household utilities, and replaces them with income tax. The Stelly Plan was approved by voters in 2002. During the 2008 legislative session the Stelly Plan was repealled, which reduced the two highest income brackets to the level they were prior to the implementation of Stelly.

This new tax cut begins the first of 2009; however, the state revenue department will not alter the withholdings on individual income tax tables until July 1, 2009. Essentially, individuals will not receive more in their paychecks until July 1, 2009; unless individuals have their employers adjust the withholdings prior to July.Due to the repealling of the Stelly Plan the state is expected to lose $358 million dollars in taxes for the next budget year, with continued losses in following years.

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