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F I S C A L I M P A C T R E P O R T
SPONSOR Moore
ORIGINAL DATE
LAST UPDATED
1/25/06
1/25/06 HB 299
SHORT TITLE
SMALL CITIES ASSISTANCE FUND
DISTRIBUTIONS
SB
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
(3,037.5)
Recurring General Fund
3,037.5
Recurring Small Cities
Assistance Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
House Bill 299 would increase the share of compensating tax revenue transferred to the small
cities assistance fund from 10 to 15 percent. In addition, it would increase the minimum amount
per city from $35 to $75 thousand. Finally, the “municipal share” used to calculate municipal
distributions would be decreased from 1.35 to 1.225 percent.
The effective date of these provisions is July 1, 2006.
FISCAL IMPLICATIONS
Under current law, 10 percent of compensating tax revenues goes to the small cities assistance
fund, 10 percent goes to the small counties assistance fund, and the remaining 80 percent goes to
the general fund.
The bill would reduce general fund revenue by 5 percent of compensating tax revenue and in-
crease small cities assistance fund revenue by 5 percent of compensating tax revenue. According
to the December 2005 consensus revenue estimate, general fund compensating tax revenue will