OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5585

AN ACT ESTABLISHING AND FUNDING A STATE PARKS SUSTAINABILITY ACCOUNT.

As Amended by House "A" (LCO 5062)

House Calendar No.: 286

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Department of Revenue Services

GF - Potential Cost

120,284

64,284

Comptroller- Fringe Benefits1

GF - Potential Cost

25,675

25,675

Department of Revenue Services

GF - Potential Revenue Gain

less than 100,000

less than 100,000

Department of Revenue Services

GF - Potential Revenue Gain

Minimal

Minimal

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill requires certain permittees transporting alcohol into the state to file a monthly report with the Department of Revenue Services (DRS), and establishes a $1,000 fine for violation of the requirement. The report must, among other things, identify the name and address of each person or entity delivering and receiving the alcohol. This results in an estimated on-going potential cost of $89,959 ($64,284 in salary and $25,675 for fringe costs) annually associated with one Revenue Examiner I within the DRS to receive and verify the information in the report, as well as a one-time cost of $60,000 in FY 17 associated with programming costs to incorporate the report into the online Taxpayer Service Center and agency Integrated Tax Administration System.  It should be noted that the bill requires that these provisions be performed within available appropriations. It does not appear this mandates that the agency perform the activity regardless of available funding, therefore the cost is potential.

To the extent the reporting requirement results in increased compliance with alcoholic liquor tax laws, there is also a potential revenue gain which is anticipated to be less than $100,000 annually.

The bill also expands existing alcohol law violations for which fines are currently levied, which results in a potential minimal revenue gain.

House “A” strikes the underlying bill and replaces it with the impact described above.

The Out Years

The fiscal impact identified above would continue into the future subject to inflation.

1 The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller. The estimated active employee fringe benefit cost associated with most personnel changes is 39.94% of payroll in FY 17 and FY 18.