Tax; cut income and grocery taxes, increase fuel excise tax, and adjust distribution of certain fuel and sales taxes.

Individual income tax rates on income exceeding $10,000 are reduced from 5% to 2.99% starting in 2030, with intermediate reductions to 3.75% in 2027, 3.5% in 2028, and 3.25% in 2029.

Gasoline and special fuel excise taxes are increased to 27 cents per gallon by July 1, 2027, with scheduled increases from 21 cents in 2025 and 24 cents in 2026.

Distribution of gasoline and fuel tax revenue to counties is modified with new provisions for counties with outstanding road and bridge bonds, requiring set-aside percentages based on bond debt levels.

Sales tax on retail grocery purchases increases to 5% effective July 1, 2025, up from the previous 7% rate that applied to most retail sales.

New optional local sales tax allows municipalities to levy up to 1% additional sales tax for road and infrastructure projects, requiring a 60% voter approval threshold and establishment of a 10-member oversight commission.

New definitions established for 'Hotel', 'Municipality', 'Restaurant', and 'Technology Intensive Enterprise' to determine sales tax treatment and eligibility for reduced tax rates.

Technology intensive enterprises must meet specific criteria including minimum wage requirements (150% of state average), workforce composition (10% scientists/engineers), and healthcare benefits to qualify for reduced sales tax rates.

New commission oversight requires annual audits, monthly reporting of receipts and expenditures, and reimbursement of unauthorized expenditures from the special municipal fund.

Use tax provisions are brought forward and expanded to include digital products, with specific rules for computer software maintained on out-of-state servers.