Sales & use tax distribution.

06LSO-0426.L2

FISCAL NOTE

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
GENERAL FUND	(22,900,000)	(23,500,000)	(24,100,000)
LOCAL SOURCES FUND	22,900,000	23,500,000	24,100,000

Source of revenue increase (decrease):

Reduction in the General Fund distribution percentage of the 4% state sales and use tax from 69% to 65%.

Assumptions:

Reduction of the General Fund distribution percentage increases the distribution percentage to local governments from 31% to 35%.

The above estimates are based on the forecast of the state share of the 4% sales and use tax, found in Table 1 of the January 2006 CREG report.

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