Fiscal Note
HB0137 - Public School Funding
State Impact:
This bill increases the non-food sales tax rate by 0.1% and earmarks the increase for public schools. It also reduces property taxes by an equal amount. The bill requires a one-time appropriation to the Tax Commission for printing and mailing of bulletins.
| Funding Source | FY 2010 Approp. | FY 2011 Approp. | FY 2012 Approp. | FY 2010 Revenue | FY 2011 Revenue | FY 2012 Revenue |
| Uniform School Fund | $0 | $0 | $0 | $0 | $17,849,300 | $36,780,700 |
| Uniform School Fund, One-time | $0 | $28,800 | $0 | $0 | $0 | $0 |
| Total | $0 | $28,800 | $0 | $0 | $17,849,300 | $36,780,700 |
Individual, Business and/or Local Impact:
Local taxing entities must decrease local property taxes by the amount received from the sales tax, which is $36,780,700 in FY 2012. The sales tax increase is in effect for the second half of FY 2011. The sales tax generated within a given district’s boundaries will be greater or less than the amount received through the WPU. The total shift is $9,452,700 in FY 2012.
The uniform fee provision alters the distribution of revenue from variable to a fixed percentage. The total shift is $1,900,000.
Local taxing entities will be unable to raise property taxes for the next two years.
| 3/4/2010, 3:39:57 PM, Lead Analyst: Young, T./Attny: AOS | Office of the Legislative Fiscal Analyst |