Ethanol tax credit-2.

12LSO-0275.L2

 

 

                                                         

FISCAL NOTE

This bill contains an appropriation of $6,400,000 from the GENERAL FUND to the Wyoming Business Council.

 

DETAIL OF APPROPRIATION

Agency #:  085     Agency Name:  Wyoming Business Council (WBC)

Unit:  New

 

EXPENDITURE BY SERIES AND YEAR       FY 2012         FY 2013         FY 2014

Other Costs – Transfer to WYDOT                      $3,200,000       $3,200,000

 

Total Expenditure Per Year:                          $3,200,000       $3,200,000

 

Grand Total Expenditure:            $6,400,000

Total Appropriated to Agency:       $6,400,000

Total Appropriated by Fund

GENERAL FUND             :          $6,400,000

 

 

FY 2013

FY 2014

FY 2015

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase:

 

 

 

CITIES AND TOWNS DIST   

0

480,000

480,000

COUNTY DIST             

0

880,000

880,000

HIGHWAY FUND

Total          

0

0

1,840,000

3,200,000

1,840,000

3,200,000

 

Source of Revenue Increase:

The amounts shown are estimates of the current revenue foregone by the state and local governments for fuel taxes that would have been retained without the current tax credit.  Keep in mind that the appropriation in the bill would replace or reimburse the Wyoming Department of Transportation (WYDOT) and local governments for existing fuel tax revenue that is refunded to eligible ethanol tax creditors.

 

Assumption:

The WBC would begin reimbursing WYDOT for ethanol tax credits paid on and after July 1, 2012 and through June 30, 2014 (FY 2013-2014).  Payments from the WBC to WYDOT thereafter will depend on the WBC's subsequent standard biennial budget requests as prescribed in this bill and appropriation of the funds by the Legislature. 

 

Note:  These estimates are based on the current annually produced ethanol of approximately 8,000,000 gallons at $0.40 credit per gallon.  Based on the statute authorizing these credits, the total maximum annual credit allowed is $4,000,000 for all ethanol producers in any one year.

 

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The proportionate shares of revenue increases for the HIGHWAY FUND and local governments are based on the fuel tax distribution formula outlined in W.S. 39-17-111 (57.5% to the HIGHWAY FUND, 27.5% to counties, and 15% to cities and towns.  All expected revenues at the state and local levels would be distributed for highway, roadway and street improvement and maintenance activities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:  Michael Swank, LSO           Phone:  777-7881

(Information provided by Diane Joyce, Wyoming Business Council, phone 777-2848; Kevin Hibbard, Wyoming Department of Transportation, phone 777-4026)

 

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