Fee Conversion Tax Credit Bill Vetoed

On June 29, 2005, I reported on HB1554 relating to a tax credit for Leased Fee Conversions. The Governor has notified the Legislature that she is considering vetoing the bill. In her message announcing her intent to veto the bill, she stated:

This bill provides a tax credit for one person in that it excludes from taxable income 50% of the capital gains realized, not to exceed $75,000 in the aggregate for all taxpayers. In effect this amounts to a tax credit of $5,438 ($75,000 x 7.25%), providing an incentive for virtually only a single seller to sell their leased fee interest.

On July 11, 2005, the Governor formallyvetoed the bill. The legislature did not vote to override the veto.