Fiscal Note - State of Utah - 2014 General Session

HB0403 - Amendments Related to Education Funding

State Government (UCA 36-12-13(2)(b)):
By fixing the personal exemption at $2,962.50, enactment of this bill could increase income tax revenue by $9,700,000 in FY 2015 and $10,100,000 in FY 2016. Also, presuming a constant WPU value, by freezing the basic rate at the higher of 0.001477 or the certified revenue levy, enactment of this bill frees-up $30,000,000 in FY 2016 in Education Fund appropriations to the WPU value.

State Budget Detail TableFY 2014FY 2015FY 2016
Revenue:   
Education Fund$0$10,100,000$10,100,000
Education Fund, One-Time$0($400,000)$0
   Total Revenue$0$9,700,000$10,100,000
    
Expenditure:   
Education Fund$0($30,000,000)($30,000,000)
Education Fund, One-Time$0$30,000,000$0
   Total Expenditure$0$0($30,000,000)
    
Net Impact, All Funds (Rev.-Exp.)$0$9,700,000$40,100,000
   Net Impact, General/Education Funds (Rev.-Exp.)$0$9,700,000$40,100,000

Local Governments (UCA 36-12-13(2)(c)):
Enactment of this bill likely will not result in direct, measurable costs for local governments.

Direct Expenditures by Utah Residents and Businesses (UCA 36-12-13(2)(d)):
By fixing the personal exemption component on the income tax return, enactment of this bill could increase the income tax liability of individuals by $9,700,000 in FY 2015 and $10,100,000 in FY 2016; for a family of 4, the tax change is about $30. The bill also imposes a minimum basic tax rate at the greater of 0.001477 or the certified revenue levy. By doing so, individuals and businesses will see an increase in property tax liability by an estimated $30,000,000 in FY 2016; for an owner of a $250,000 home, the tax increase is about $15 and for an owner of a $1 million business property, the tax increase is about $108.

Performance Note Required? (Joint Rule 4-2-404): No

2/28/2014, 7:45:12 AM, Lead Analyst: Young, T./Attny: TJNOffice of the Legislative Fiscal Analyst