Sales tax on food-2.

04LSO-0240.L3

                                                         

FISCAL NOTE (HB0220)

 

	FY 2005	FY 2006	FY 2007
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Decrease:
GENERAL FUND	7,810,000	8,140,000	8,420,000
LOCAL SOURCES FUND	10,820,000	11,290,000	11,670,000

 

Source of revenue decrease:

 

Decrease of the state sales and use tax rate on food for domestic home consumption to 2 percent, beginning in FY 2005. Local option sales and use taxes on food are exempted beginning in FY 2005.

 

Assumptions:

 

Estimates derived from FY 2003 distribution by Minor Business Class Report and are reduced by 25 percent to estimate non-food sales by grocers.

 

The estimated revenue decreases in the table above are based on the annual projected sales and use tax revenues reflected in the January 2004 CREG projections.

 

 

 

 

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

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

 

 

 

 

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

 

Department of Revenue

Department of Audit