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Sales tax on food-sales tax increase. |
03LSO-0431.L1 |
FISCAL NOTE (HB0212)
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FY 2004 |
FY 2005 |
FY 2006 |
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NON-ADMINISTRATIVE IMPACT |
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Anticipated Revenue Increase: |
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GENERAL FUND |
36,702,000 |
37,620,000 |
38,560,000 |
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LOCAL SOURCES FUND |
15,568,000 |
15,957,000 |
16,356,000 |
Source of revenue increase: Increase in state sales & use tax rate by 0.5 percent to a total of 4.5 percent.
Assumptions:
Assume 2.5 percent increase annually for inflation. Removed the tax that would have been collected for food from the tax base. The estimated impact on taxation of the removal of food from the tax base was $2,638,000 at a 0.5 percent increase.
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FY 2004 |
FY 2005 |
FY 2006 |
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NON-ADMINISTRATIVE IMPACT |
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|
|
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Anticipated Revenue Decrease: |
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|
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GENERAL FUND |
(16,062,000) |
(16,464,000) |
(16,875,000) |
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LOCAL SOURCES FUND |
(11,331,000) |
(11,614,000) |
(11,904,000) |
Source of revenue decrease: Exemption from sales & use tax of food for domestic home consumption. Estimates were derived from FY 2002 SIC Minor Business Class Report and are reduced by 25 percent to estimate non-food sales by grocers.
Assumptions:
Projected revenue decreases using an inflation rate of 2.5 percent annually.
Prepared by: Dan Noble, Dept. of Revenue Phone: 777-5220
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 may be affected administratively: