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





SPONSOR: Miera DATE TYPED: 2-25-99 HB 625
SHORT TITLE: Education Tax Credit SB
ANALYST: Taylor


REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000
n.a. $ (14,400.0) $ (14,800.0) Recurring General Fund



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to HB236, HB342, HB486, HB786, SB112, SB201,

SB268, SB290, SB348 and SB522



SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of Bill



House Bill 625 would allow taxpayers with adjusted gross income of $30 thousand or less to claim a fifty-dollar credit for each dependent child enrolled in a public, private or home school for any part of the taxable year. The credit would be applied against the taxpayer's income tax liability for the taxable year, and if the credit is greater than the person's income tax liability, it would be refunded to the taxpayer.



FISCAL IMPLICATIONS



The Taxation and Revenue Department has estimated that this bill would decrease general fund revenues by $14.4 million in FY 2000.



The TRD estimate assumes that every taxpayer with an adjusted gross income less than $30 thousand will claim the credit irrespective of nominal restrictions. The number of estimated dependents is 295,000. The credit would affect 295 thousand taxpayers.



ADMINISTRATIVE IMPLICATIONS



TRD reports that implementing the credit would require 575 hours of programming but would not require any additional employees.



OTHER SUBSTANTIVE ISSUES



TRD suggests technical language that would address which taxpayer could take the credit if a married couple files separate tax returns.



POSSIBLE QUESTIONS