Fiscal Note - State of Utah - 2013 General Session
SB0266 - Tax Revisions
State Government (UCA 36-12-13(2)(b)):
Enactment of this bill reinstates the sales tax on food, which increases revenue to the General Fund by $172,421,000 in FY 2014 and $177,594,000 in FY 2015. The bill also adjusts the percentage of sales tax currently allocated to transportation, which will result in an increase in the General Fund of $10,526,000 in FY 2014 and $17,137,000 in FY 2015 and a corresponding reduction in the Transportation Fund. Additionally, the bill repeals the Rural Health Care Facilities appropriation, which will result in an ongoing $218,800 reduction in General Fund expenses.
On the Education Fund side, the bill also enacts two income tax credits (5% of the federal EITC and a tiered income tax credit based on income level), which reduces revenue to the Education Fund by $135,166,000 in FY 2015.
The Tax Commission may see one-time bulletin and notification costs of $37,800 in FY 2014.
| State Budget Detail Table | FY 2013 | FY 2014 | FY 2015 |
| Revenue: | |||
| General Fund | $0 | $177,594,000 | $177,594,000 |
| General Fund | $0 | $17,137,000 | $17,137,000 |
| General Fund, One-Time | $0 | ($6,611,000) | $0 |
| General Fund, One-Time | $0 | ($5,173,000) | $0 |
| Education Fund | $0 | ($135,166,000) | ($135,166,000) |
| Education Fund, One-Time | $0 | $135,166,000 | $0 |
| Restricted Funds | $0 | ($17,137,000) | ($17,137,000) |
| Restricted Funds | $0 | $6,611,000 | $0 |
| Total Revenue | $0 | $172,421,000 | $42,428,000 |
| Expenditure: | |||
| General Fund | $0 | ($218,800) | ($218,800) |
| General Fund, One-Time | $0 | $37,800 | $0 |
| Total Expenditure | $0 | ($181,000) | ($218,800) |
| Net Impact, All Funds (Rev.-Exp.) | $0 | $172,602,000 | $42,646,800 |
| Net Impact, General/Education Funds (Rev.-Exp.) | $0 | $183,128,000 | $59,783,800 |
Local Governments (UCA 36-12-13(2)(c)):
Local taxing entities may see an increase in sales tax revenue of $22,469,000 in FY 2014 and $23,143,000 in FY 2015.
Direct Expenditures by Utah Residents and Businesses (UCA 36-12-13(2)(d)):
Individuals and businesses will see an increase in their food tax and local sales tax of about $194,890,000 in FY 2014 and $200,737,000 in FY 2015. Collectively, individuals eligible for either one or both of the income tax credits will see a reduction in income tax liability that totals to $135,166,000 in FY�2015.
Performance Note Required? (Joint Rule 4-2-404): No
| 3/7/2013, 3:08:36 PM, Lead Analyst: Young, T./Attny: RLR | Office of the Legislative Fiscal Analyst |