Fiscal Note

SB0035 - Sales and Use Tax Definitions Relating to Property

State Impact:
Enactment of this bill will increase revenue to the General Fund by $227,000 in FY 2010 and $252,000 in FY 2011. Revenue to the Critical Highway Needs Fund and the Transportation Investment Fund will equally increase by $1,200 in FY 2010 and $1,400 in FY 2011.

Funding SourceFY 2009
Approp.
FY 2010
Approp.
FY 2011
Approp.
FY 2009
Revenue
FY 2010
Revenue
FY 2011
Revenue
General Fund$0$0$0$0$227,000$252,000
Transportation Fund Restricted$0$0$0$0$2,400$2,800
   Total
$0

$0

$0

$0

$229,400

$254,800

Individual, Business and/or Local Impact:
Sales tax revenue to locals will increase by $97,000 in FY 2010 and $108,000 in FY 2011. Sales tax revenue paid by businesses will decrease by $2,832,000 in FY 2010 and $3,153,000 in FY 2011. Sales tax paid by individuals will increase by $3,059,000 in FY 2010 and $3,405,000 in FY 2011. The increase in sales tax is because consumers pay sales tax on the markup whereas businesses pay sales tax on a wholesale price.

1/27/2009, 10:36:30 AM, Lead Analyst: Young, T.Office of the Legislative Fiscal Analyst