By Bob Katzen

The Senate 5-34, rejected an amendment that would remove a section in the budget that exempts tax revenue generated from the recently voter-approved Millionaire Tax from counting toward the allowable state tax revenue limitations, under Chapter 62F, which provides that whenever revenue collections in a fiscal year exceed an annual cap tied to wage and salary growth, the excess is returned to taxpayers.

Last year, $3 billion in refunds were returned to taxpayers when the law was triggered for just the second time since its passage in 1986. The revenue from the Millionaire Tax is deposited into the new Education and Transportation Stabilization Fund.

Amendment supporters said the section should be repealed because it goes against the will of the voters by excluding the new millionaire’s tax revenue from the total calculation for rebates back to the taxpayers and reducing the amount of tax relief resulting from Section 62F.

Amendment opponents said the amendment will put the new revenue in jeopardy and argued this new revenue is earmarked for education and transportation and must be protected and treated differently than other tax revenue.

(Please note what a “Yes” and “No” vote mean. The amendment was on striking the section that exempts tax revenue generated from the recently voter-approved Millionaire Tax from counting toward the allowable state tax revenue limitations. A “Yes” vote is for the amendment that favors tax revenue generated from the recently voter-approved Millionaire Tax counting toward the allowable state tax revenue limitations. A “No” vote is against the amendment and supports exempting the revenue from the allowable state tax revenue limitations.)

Sen. Patricia Jehlen No