SB0023S01 - Income Taxation of Pass-through Entities and Pass-through Entity Taxpayers
Enactment of this bill could increase revenue to the Education Fund by $678,300 in FY 2010 and $710,000 in FY 2011. Beginning in FY 2012, there will be a loss in revenue to the Education Fund of $2,200,000 annually. The Tax Commission will require an appropriation of $80,000 to enforce the provisions of the bill. This would be one auditor.
|Funding Source||FY 2009|
|Education Fund, One-Time||$0||$0||$0||$0||($31,700)||$0|
Individual, Business and/or Local Impact:
Individuals with built in and other gains could experience a decrease in taxes owed of $3,000,000 beginning in FY 2012. Non-resident individuals will be subject to withholding. If the non-resident taxpayers decide not to file for the withholding that has taken place during the year, there could be an increase in taxes on these individuals of $678,300 in FY 2010 and $710,000 in FY 2011. S-Corporation businesses with non-resident shareholders will be required to withhold. Businesses structured as s-corporations with built in and other gains could experience a decrease of the amount mentioned above. Locals are unaffected.
|2/18/2009, 10:27:25 AM, Lead Analyst: Young, T.||Office of the Legislative Fiscal Analyst|