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SPONSOR: |
Marquardt |
DATE TYPED: |
|
HB |
13 |
||
|
SHORT TITLE: |
Compensating Tax Deduction for Defense Systems |
SB |
|
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|
|
ANALYST: |
Williams |
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REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY04 |
FY05 |
|
|
|
|
|
Potential
for Significant Revenue Loss * |
|
Recurring |
General
Fund |
|
|
Potential
for Revenue Loss * |
|
Recurring |
Local
Governments |
(Parenthesis ( ) Indicate Revenue Decreases)
* See discussion below.
LFC Files
No
Responses Received From Agencies
SUMMARY
Synopsis
of Bill
House Bill 13
authorizes a deduction from compensating tax for equipment, replacement parts,
components and systems brought into the state for testing and evaluation
programs of the United States Department of Defense at a major range and
testing facilities. The deduction is
effective beginning
FISCAL IMPLICATIONS
The bill would result
in a recurring General Fund and local government revenue loss. The magnitude of the revenue loss is under
review, but could be significant. At a
special session hearing, industry representatives indicated potential total tax
liability for one firm of $10 million.
The potential annual impacts are expected to be erratic based on variations
in project activity levels from one year to the next.
OTHER SUBSTANTIVE ISSUES
Language in the bill
is broadly applicable, and could be narrowed to focus on specific economic development
goals and to ensure the incentive is effective.
POSSIBLE QUESTIONS
AW/yr