Utility tax relief.

04LSO-0272.L3

                                                         

FISCAL NOTE (HB0181)

 

This bill contains an appropriation of $6,000,000 from the GENERAL FUND to the Department of Revenue. This appropriation is effective for the period beginning April 1, 2004 and ending June 30, 2005.

 

	FY 2004	FY 2005	FY 2006
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Decrease:
GENERAL FUND	1,580,000	4,770,000	0

 

Source of revenue decrease:

 

1-year sales & use tax exemption on sales of gas, heating oil, propane and electricity for domestic consumption.

 

Assumptions:

 

The above General Fund decrease represents the state share of the exemption (70.5% of statewide 4% sales & use tax in for 3 months in FY04, 69.0% of statewide 4% sales & use tax for 9 months in FY05).

 

Local governments will remain whole thanks to the appropriation in the bill. (The local government share is estimated at $5,540,000, including the local share of statewide 4% sales & use tax plus county local option taxes). Revenue decrease in local option taxes was calculated based on the proportion of average local option taxes paid to total tax revenue collected.

 

The above estimate is based on 2002 revenue report on utility Sales from the Wyoming Public Service Commission, adjusted by an annual inflation rate of 2.8%.

 

This exemption is effective for the period April 1, 2004 through March 31, 2005.

 

 

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(Information provided by Dan Noble, Dept. of Revenue; phone 777-5220)