Fiscal Note

HB0123 - Tax Revisions

State Impact:
Enactment of this bill could reduce the General Fund by $106,000,000 in FY 2008 and by $110,000,000 in FY 2009. There is an estimated Education Fund loss of $173,008,200 in FY 2008 and a loss of $192,689,000 in FY 2009. There is also a one-time loss to the Education Fund of $43,252,100 as a result of the retroctive implementation of the income tax changes. The reductions to the Education Fund will be offset by an appropriation from the General Fund of approximately $70,835,000 in FY 2008 and by $84,194,700 in FY 2009. The Tax Commission will require a one-time appropriation of $33,300 in FY 2008 to implement the provisions of the bill.

Funding SourceFY 2007
Approp.		FY 2008
Approp.		FY 2009
Approp.		FY 2007
Revenue		FY 2008
Revenue		FY 2009
Revenue
General Fund$0$70,835,000$84,194,700$0($106,000,000)($110,000,000)
General Fund, One-Time$0$33,300$0$0$0$0
Education Fund$0$0$0$0($173,008,200)($192,689,000)
Education Fund$0$0$0$0$70,835,000$84,194,700
Education Fund, One-Time$0$0$0$0($43,252,100)$0
   Total
$0
$70,868,300
$84,194,700
$0
($251,425,300)
($218,494,300)

Individual, Business and/or Local Impact:
The individual impact related to the income tax changes will be dependent upon filing status, income levels, and deductions claimed. The average impact as a result of the food tax change would be approximately $38 per person.

1/19/2007, 10:51:08 AM, Lead Analyst: Wilko, A.Office of the Legislative Fiscal Analyst