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Fiscal Note - State of Utah - 2011 General Session

SB0189 - Tax Code Modifications

State Government (UCA 36-12-13(2)(b)):
By increasing the general sales tax rate and authorizing a 5% refundable Earned Income Tax Credit (EITC), enactment of this bill increases revenue to the General Fund by $16,800,500 in FY 2012 and $17,942,900 in FY 2013, decreases revenue to the Education Fund by $18,000,000 in FY 2012 and $19,026,000 in FY 2013, and increases revenue to the Centennial Highway Fund by $1,520,700 in FY 2012 and $1,624,000 in FY 2013. The bill authorizes a transfer from the General Fund to the Education Fund to cover the costs of the EITC.

State Budget Detail TableFY 2011FY 2012FY 2013
Revenue:   
General Fund$0$17,942,900$17,942,900
General Fund, One-Time$0($1,142,400)$0
Education Fund$0($19,026,000)($19,026,000)
Education Fund, One-Time$0$1,026,000$0
Transportation Fund Restricted$0$1,520,700$1,624,000
   Total Revenue$0$321,200$540,900
    
Expenditure:   
General Fund$0($19,026,000)($19,026,000)
General Fund, One-Time$0$1,026,000$0
Education Fund$0$19,026,000$19,026,000
Education Fund, One-Time$0($1,026,000)$0
   Total Expenditure$0$0$0
    
Net Impact, All Funds (Rev.-Exp.)$0$321,200$540,900
   Net Impact, General/Education Funds (Rev.-Exp.)$0($1,199,500)($1,083,100)

Local Governments (UCA 36-12-13(2)(c)):
Enactment of this bill likely will not result in direct, measurable costs for local governments.

Direct Expenditures by Utah Residents and Businesses (UCA 36-12-13(2)(d)):
By increasing the general sales tax rate and enacting a 5% refundable EITC, this bill shifts tax liability from about 180,000 individuals receiving the EITC to all sales tax payers.

3/2/2011, 9:38:56 AM, Lead Analyst: Young, T./Attny: RLROffice of the Legislative Fiscal Analyst