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SPONSOR: |
Whitaker |
DATE TYPED: |
|
HB |
229/aHTRC |
||
SHORT TITLE: |
Increase Small Counties Assistance |
SB |
|
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
800 |
|
Recurring |
Small Counties Assistance Fund |
|
(800) |
|
Recurring |
General Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
LFC Files
Responses
Received From
Department of Finance and
Administration
SUMMARY
Synopsis of HTRC
Amendment
The effect of the House Taxation and Revenue Committee
amendment is to reduce the fiscal impact to $800,000.0.
Synopsis
of Bill
House Bill
229 changes the Small
Counties Assistance Act by amending the ceiling valuation
calculation and the distribution from the small counties assistance fund. It increases the population limit for class
B, class C or first class counties that qualify for the fund from 45,000 to
48,000.
House Bill
229 defines "ceiling valuation" to mean:
(1)
for the 2002 property tax
year, one billion four hundred million dollars ($1,400,000,000);
(2) for
each subsequent property tax year, an amount equal to the product obtained
by multiplying one billion four hundred
million dollars ($1,400,000,000) by a fraction, the numerator of which is the
total valuation for the state for that property tax year and the denominator of
which is the total valuation for the state for the 2002 property tax year.
This legislation also defines
“demographer" as a qualified employee from the Bureau of Business and
Economic Research at the
As stated
by the Department of Finance and Administration, a total valuation for the
property tax year preceding the year in which a distribution pursuant to the
Small Counties Assistance Act for that county is to be made that is no greater
than the ceiling valuation for that property tax year. The term "total
valuation" means the sum for a jurisdiction for a property tax year of the
net taxable value determined pursuant to the Property Tax Code.
FISCAL IMPLICATIONS
The
distribution formula in HB 229 utilizes property valuation amounts instead of
property tax revenues. The 2002 distribution
had a grand total of $1,500,000.
According to the Department of Finance and Administration, a trial
application of the new distribution formula based on
the
following assumptions: applying a “ceiling valuation” of $1,400,000,000; and,
utilizing
data from
the 2000 census and the 2002 valuations would require $4.4 million in
general
fund revenues. Therefore, the net fiscal
impact of HB 229 would be $2.9 million.