OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

HB-6704

AN ACT CONCERNING EXPENDITURES AND REVENUE FOR THE BIENNIUM ENDING JUNE 30, 2015.

AMENDMENT

LCO No.: 8651

House Calendar No.: 678

Senate Calendar No.: 692


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 14 $

FY 15 $

Department of Revenue Services

GF - Net Revenue Gain

2.7 million

17.0 million

Department of Revenue Services

TF - Revenue Loss

8.7 million

8.7 million

Municipal Impact: None

Explanation

The amendment lowers the rate of the state Earned Income Tax Credit (EITC) to 10% of the federal EITC, which results in a revenue gain of approximately $62.7 million and $77.0 million in FY 14 and FY 15, respectively.

The amendment also eliminates the scheduled rate increase, from 7.0% to 8.1%, in the Petroleum Products Gross Earnings Tax (PGET) for July 1, 2013. This results in an annual General Fund revenue loss of approximately $60 million and an annual Special Transportation Fund revenue loss of approximately $8.7 million beginning in FY 14.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.