Property tax refund program.

09LSO-0452.L1

FISCAL NOTE

	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
GENERAL FUND	72,000	79,000	87,000

Source of expenditures increase: Increase in the number of property taxpayers qualifying for the Property Tax Refund Program

Assumptions:

This bill increases the gross income limit for qualifying property taxpayers from two-thirds of the median gross income to three-fourths of the median gross income. It also increases the household asset limit from $50,000 to $100,000.

For tax year 2008, it is estimated that 29,000 individuals would have qualified for current property tax refund program, based on information from the Division of Economic Analysis. 1,800 property taxpayers submitted applications, and 1,500 applicants qualified for assistance. The average refund was $320, resulting in total refunds of an estimated $480,000 (1,500 X $320 = $480,000). $2 million was appropriated to the current property tax refund program (Ch. 101, 2008 Session laws). It is assumed that the current property tax refund program will experience 10% growth in qualify applicants each tax year.

It is assumed that the changes proposed in this bill will increase the number of qualifying applicants to approximately $1,850 for tax year 2009. It is also assumed that this number of qualify applicants would increase by 10% per year. The above estimate represents the projected increase in property tax refunds with passage of this bill.

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

(Information provided by Marvin Applequist, DOR; 777-5235)