OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-501

AN ACT ADJUSTING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017.

AMENDMENT

LCO No.: 6410

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

Resources of the Citizen's Election Fund

Citizen's Election Fund

$6 million

None

Department of Revenue Services

GF - Revenue Loss

$45 million

$10 million

Legislative Mgmt.

GF - Cost

Over $100,000

Over $100,000

Note: GF=General Fund; Various=Various

Municipal Impact: None

Explanation

The amendment repeals the Business Entity Tax, which results in a revenue loss estimated to be $45 million in each odd-numbered year and $10 million in each even-numbered year beginning in FY 17. (The Business Entity Tax is a $250 fee due every other year although some revenues are received in the off years.)

The amendment also requires the Office of Fiscal Analysis to conduct economic analyses of legislation involving state tax law. It is anticipated that the OFA would require additional resources, including contracted economic modeling and/or additional staff, to conduct this analysis.

Lastly, the amendment reduces by 50% grants from the Citizens' Election Fund in the 2016 election cycle, which would result in a savings of $6 million.

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.