Sales tax on food-exemption.

05LSO-0293.L1

                                                         

FISCAL NOTE

 

This bill contains an appropriation of $16,000,000 from the GENERAL FUND.

 

	FY 2006	FY 2007	FY 2008
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue (Decrease):
GENERAL FUND	17,340,000	17,730,000	18,210,000
LOCAL SOURCES FUND	0	16,350,000	16,790,000

 

Source of revenue decrease: Exemption from sales and use tax of food for domestic home consumption.

 

Assumptions:

 

Local governments are held harmless in FY06 by the appropriation in the bill. The revenue decrease for local governments in FY06 is offset by the appropriation, thus bringing the net impact on local governments to zero.

 

Estimates based on sales and use taxes of food retailers from FY04 Distribution by Minor Business Class Report, reduced by 25 percent to estimate non-food sales.

 

 

 

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

(Information provided 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 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

Department of Audit