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TAXES Restoring stability and credibility to state government was the movinq force behind this year's budget. Its provisions will fund education, provide some measure of proper~y tax relief, promote-economic growth and the creation of jobs, pay off debts left by the previous administration, and yet cut down on the escalation of government spending by eliminating or cutting back on programs which had become too expensive. In addition, there is a $250 million budget reserve fund to protect against future deficits. The PROPERTY TAX program saves the State '$42 million compared to current law, but targets tax relief to those needing it the mQst -- taxpayers with the highest tax burdens. For most homeowners, the new schedule will limit property taxes to less than 4% of income. INCOME TAX preparation will be simpler because of conformity with th~ federal income tax system on a number of deductions. INDEXING remains intact. The 10% SURCHARGE is extended through the 1984-85 biennium. SALES TAX will continue at 6%. The 5% sales tax of on-sale liquor is repealed and replaced by a 2.5% sales tax of on-sale and off-sale liquor, beer and wine. The Tax Bill also contained special features to encourage ECONOMIC GROWTH AND CREATE JOBS. Tax credits will be available to companies which transfer technology to a small business or invest in a small business. Communities may also choose to apply for designation as an Enterprise Zone within which small businesses could qualify for special state tax incentives. ADDITIONAL TAX FACTS HOMESTEAD CREDIT will be reduced from 58% to 54% for non-farm homesteads, but with the maximum remaining at $650. Maximum PROPERTY TAX REFUND (Circuit Breaker) is increased to $1125. SENIOR CITIZENS AND THE HANDICAPPED continue to receive preferential treatment. RENT CREDIT will be based on actual property taxes paid, rather than the current 23%, except for senior citizens and others in subsidized housing whose rent credit will be 20% TARGETING relief to those who need it most...Homeowners whose taxes go up more than 20% will be eligible for a credit equal to 50% of the increase above 20%, up to a maximum of $200. The Legislature had its eye'on farm problems, And added ~n Additional $9.4. million in PROPERTY TAX RELIEF JUST FOR FARMERS. ...The entire farm, rather than just the homestead and 240 acres, will be eligible for homestead credit. ...Ag credit will be computed as a percentage of gross tax rather than mills applied against assessed value. First 320 acres, 29% of gross tax. Next 320 acres, 13%. Over 640 acres, 10%. - 18-