OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

SB-502

AN ACT CONCERNING REVENUE AND OTHER ITEMS TO IMPLEMENT THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017.

AMENDMENT

LCO No.: 6415

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

FY 18 $

Department of Revenue Services

GF; Various - Revenue Loss

None

7.8 million

7.8 million

Resources of the Citizen's Election Fund

CEF - Revenue Loss

3.6 million

4.1 million

None

Resources of the General Fund

GF - Revenue Gain

3.6 million

4.1 million

None

Note: GF=General Fund; CEF=Citizens' Election Fund; Various=Various

Municipal Impact: None

Explanation

The amendment implements sales tax exemptions for (1) feminine hygiene products and (2) children's diapers on July 1, 2016 rather than July 1, 2018. This results in an annualized revenue loss of $7.8 million for both exemptions in FY 17 and FY 18.1

The amendment also transfers $3.6 million in FY 16 and $4.1 million from the Citizens' Election Fund to the resources of the General Fund.

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.

1 Current law requires a monthly transfer of a portion of the sales tax generated into the Municipal Revenue Sharing Account (MRSA) and the Special Transportation Fund. All policies impacting the base of the Sales Tax will therefore impact the transfers to these two funds. It should be noted that SB 501 modifies the MRSA transfer for FY 17.