NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Begay

 

DATE TYPED:

2/10/03

 

HB

240

 

SHORT TITLE:

Personal Income Surtax for Wildlife Programs

 

SB

 

 

 

ANALYST:

Neel

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

($0.1)

See Narrative

($0.1)

See Narrative

Recurring

General Fund

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

LFC files

 

Responses Received From

 

No response from: Taxation and Revenue Department (TRD)

Department of Game and Fish (DGF)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 240 creates a new section of the Tax Administration Act that distributes a portion of the State’s personal income tax receipts to a newly created fund in the State Treasury.  The bill would create a new tax assessment in addition to existing taxes in the amount of two dollars ($2.00) for each federal exemption allowable for federal income tax purposes for each individual included in the return, or twelve dollars ($12.00), whichever is less.  This surtax would be referred to as the Wildlife Conservation Surtax.   The revenue generated would be deposited into the newly created Wildlife Conservation Fund.  Beginning with fiscal year 2005, the legislature would be able to appropriate money in this fund for use by the Department of Game and Fish.  The bill lists allowed uses of the funds.  The major uses are to fund the operations of the Conservation Services Division, the Wildlife Conservation Act and to acquire, lease, develop, land for wildlife habitat.

 

FISCAL IMPLICATIONS

 

DGF estimated that the proposed surcharge would generate approximately $3.48 million per fiscal year.  This calculation assumes a state population of 1,800,000 with approximately 4% of the population occurring in households with more than 6 federal tax exemptions. 

 

SN/prr