OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-7061

AN ACT CONCERNING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017, AND MAKING APPROPRIATIONS THEREFOR, AND OTHER PROVISIONS RELATED TO REVENUE, DEFICIENCY APPROPRIATIONS AND TAX FAIRNESS AND ECONOMIC DEVELOPMENT.

AMENDMENT

LCO No.: 9376


OFA Fiscal Note

SEE BELOW

The amendment results in a revenue gain of $158.6 million in FY 16 and $276.9 million in FY 17 to the General Fund and an equal revenue loss to the Special Transportation Fund (STF) by eliminating a revenue diversion from the sales and use tax to the STF.

The amendment precludes a revenue gain of (1) $15.0 million in FY 16 and $20.0 million in FY 17 by eliminating the establishment of a 6% tax on ambulatory surgical centers and (2) $2.8 million in FY 16 and FY 17 by eliminating a cap on the use of tax credits against the hospital tax.

The amendment results in an annual revenue loss of $556 million beginning in FY 16 by requiring the Commissioner of Social Services to provide a refund to hospitals in the amount of hospital tax revenue collected by the state each fiscal year.

The amendment also caps the maximum state hospital tax rate at 6%. There is no fiscal impact as federal law currently caps the tax rate at 6%.

The FY 16 – FY 17 revenue estimates, as adopted by the Finance, Revenue, and Bonding committee on June 1, 2015, include $556 million in FY 16 and FY 17 each associated with the hospital tax.

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.