TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS BY THE UNITED STATES DEPARTMENT OF AGRICULTURE.

Fiscal Impact Statement Bill: SB408 Bill Subtitle: TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS BY THE UNITED STATES DEPARTMENT OF AGRICULTURE. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Sen. B. Johnson and Rep. Eaves Basic Change: SB408 creates an income tax exemption for certain disaster relief payments made by the United States Department of Agriculture (USDA). The American Relief Act of 2025 is federal legislation concerning disaster aid and an extension of the farm bill. SB408 creates an exemption from state income tax for payments received by a taxpayer under Division B, Title I, of the American Relief Act of 2025. SB408 is effective for tax years beginning on or after January 1, 2025. Fiscal Impact: Budget neutral. The disaster relief payments were recently enacted by Congress and were not included in the FY 2025 revenue forecast nor in the Governor’s FY 2026-2027 biennial budget. Therefore, the bill does not impact the current or proposed state general revenue budget. If the payments are not exempted from income taxation, DFA projects that the state will collect