Sales & use tax refund.                                                                                                                        06LSO-0083.L4

 

FISCAL NOTE

 

This bill contains an appropriation of $12,300,000 from the GENERAL FUND to the Department of Revenue.

 

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
GENERAL FUND	0	6,100,000	6,200,000

 

Source of expenditure increase: General Fund appropriation necessary to fund refunds to qualified program participants. The sales and use tax relief granted through this bill is subject to legislative appropriation. It is estimated that the $12.3 million appropriation in the bill would fund all refunds in FY 2008 and FY 2009.

 

Assumptions:

Total number of households below one-half of the Median Household Income (MHI) that meet the one year residency requirement is estimated at 53,007, based on the following assumptions: Total number of households in 2007 is 205,400; 94% of households have at least one year state residency; 5,040 additional households will qualify due to their county’s lower than state’s MHI; [(205,400/4 + 5,040) x 94% = 53,007]

 

Critical Assumption: 50% of the estimated 53,007 households would apply, otherwise qualify (meet the asset requirement), and receive a refund.

 

The above estimates assume one refund per household, and that every qualifying applicant would receive the maximum $230 refund.

 

This bill is effective January 1, 2007. The bill requires refunds to be issued on or before September 30 of year of application. Therefore, initial refunds would be issued by September 30, 2007 (FY 2008).

 

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

(Info. provided by Wenlin Liu, Div. of Econ. Analysis; 777-7504, Dan Noble, Dept. of Revenue; phone 777-5220)

 

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 State Auditor's Office