Fiscal Note

SB0245S05 - Funding Relating to Airports, Highways, and Public Transit

State Impact:
Due to the changes in this bill, the County of the First Class State Highway Projects Fund would experience a decrease in revenue of $1,592,800 in FY 2009 and $1,651,100 in FY 2010. Cities with an international airport located within a county of the first class would see an increase in revenue of $1,592,800 in FY 2009 and $1,651,100 in FY 2010. In addition, enactment of this bill would increase the sales tax rate in certain counties; this revenue would accumulate to the General Fund. The sales tax revenue would be appropriated to transit districts proportionately.

Individual, Business and/or Local Impact:
Enactment of this bill will allow counties to use sales tax revenue for airport facilities. Counties of the second class may impose a sales and use tax on certain transactions to fund a County of the Second Class State Highway Projects Fund and/or projects related to public transit. Depending upon decisions made by the respective county legislative body, sales tax revenue may increase. Some counties of the second class will be required to decrease the county option transportation tax in order to raise the revenue discussed in the bill. Should all four counties of the second class choose to impose the entire sales tax rate, revenue in FY 2010 would be $39 million. Due to the inclusion of airports, counties may experience an increase in costs for the annual independent audit.