Home owner's tax credit-2.

06LSO-0317.L5

FISCAL NOTE

This bill contains an appropriation of $8,000,000 from the GENERAL FUND to the Department of Revenue.  This appropriation is effective immediately.

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue (Decrease):
AD VALOREM TAX	(6,140,000)	0	0
SCHOOL FOUNDATION FUND	(1,330,000)	0	0
Anticipated Expenditure Increase:
GENERAL FUND	7,470,000	0	0

Source of revenue decrease: Home owner's tax credit granted for property taxes imposed during calendar year 2006 (FY 2007).

Source of expenditure increase: General Fund appropriation to offset  property tax revenue decrease due to home owner's tax credit.

Assumptions:

See attached spreadsheet. Projections assume that values and medians remain constant. Also assumes "qualifying" parcel counts and owner-occupancy percentages are accurate.

Home owner's tax credit is allowed during a fiscal year only if the legislature has appropriated funds to reimburse all local governments for tax losses created by the credit.

Local governments are held harmless in FY 2007 by the appropriation in the bill. The total estimated revenue decrease of $7,470,000 is offset by the appropriation in the bill, bringing the net impact on local governments and the School Foundation Program to zero.

Prepared by:   Wade Hall, Dept. of Revenue Phone:   777-5235

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

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