Fiscal Note - State of Utah - 2011 General Session

SB0017 - State Tax Commission Levy Process Using Depository Institution Data Match System

State Government (UCA 36-12-13(2)(b)):
Presuming a 1% increase in compliance, this bill generates net one-time General/Education fund revenue of $1,328,700 in FY 2012 and net ongoing General/Education fund revenue of $48,300 per year beginning in FY 2013. Provisions of the bill will cost the State Tax Commission $72,000 in ongoing collection payments to depository institutions. The elimination of one Tax Commission FTE will save $40,000 per year, for a net cost increase of $32,000 per year. Quicker collection of payments facilitated by this bill may result in a $1,345,600 one-time increase in General/Education Fund revenue in FY 2012. Every 1% increase in compliance resulting from this bill would increase ongoing General Fund revenue by $9,700 and ongoing Education Fund revenue by $72,500 beginning in FY 2013.

State Budget Detail TableFY 2011FY 2012FY 2013
Revenue:   
General Fund$0$0$9,700
General Fund, One-Time$0$278,400$0
Education Fund$0$0$72,500
Education Fund, One-Time$0$1,067,200$0
   Total Revenue$0$1,345,600$82,200
    
Expenditure:   
General Fund$0$6,900$6,900
General Fund, One-Time$0($3,500)$0
Education Fund$0$27,000$27,000
Education Fund, One-Time$0($13,500)$0
Restricted Funds$0($1,900)($1,900)
   Total Expenditure$0$15,000$32,000
    
Net Impact, All Funds (Rev.-Exp.)$0$1,330,600$50,200
   Net Impact, General/Education Funds (Rev.-Exp.)$0$1,328,700$48,300

Local Governments (UCA 36-12-13(2)(c)):
Local governments may see an increase in sales tax revenue of $16,100 in FY 2012.

Direct Expenditures by Utah Residents and Businesses (UCA 36-12-13(2)(d)):
About 5,000 individuals and businesses delinquent on their tax payments may end up paying sooner than has historically been the case. On average, the individuals can expect to pay a bank levy of $423.

1/22/2011, 4:58:38 PM, Lead Analyst: Young, T./Attny: RLROffice of the Legislative Fiscal Analyst