Fiscal Note

HB0148 - Sales and Use Tax Changes

State Impact:
Enactment of this bill will result in a shift in earmarked revenues of $1,823,000 in FY 2011 and $2,972,000 in FY 2012 from the Rural Health Care Compensation Fund and Tourism, Recreation and Cultural Facilities Fund to transportation restricted revenues. Overall the provisions are revenue neutral.

Individual, Business and/or Local Impact:
Local sales tax revenues could increase by $34,608,000 in FY 2011 and by $71,569,000 in FY 2012 with funding earmarked for rural health, ZAP, TRCC and transportation. There will be a corresponding decrease in property tax revenues for the ZAP earmark. Individuals and businesses could see an increase in sales tax paid. There will also be a tax decrease of 1 percent in the cost of restaurant purchases for individuals and businesses.