REVENUE
The Conference Committee Report includes a number of new tax revenue provisions that generate approximately $880 million. The largest source of this new revenue is a 1.25 percentage point increase to the state’s sales tax, for a new rate of 6.25 percent. This sales tax rate increase is estimated to raise $759 million in new revenue. Unlike the Senate budget, the Conference Committee report does not exempt meals from the statewide sales tax increase.
In addition to the sales tax increase, other revenue provisions include:
Eliminating the sales tax exemption for alcohol purchases. Currently, alcohol is subject to its own taxes, but is not subject to the sales tax. The elimination of this exemption is estimated to generate $78.8 million.
Modifies the states film tax credit so that salaries exceeding $2 million would not be eligible expenses under the credit. This change, which is estimated to generate approximately $25 million in revenue, was first proposed in the Governor’s revised budget recommendations.
Imposes a 5 percent excise tax on satellite broadcast services. This new excise tax, included in the final Senate budget, is estimated to generate $25.9 million in new revenue.
Funds additional auditing staff at the Department of Revenue. First proposed in the Governor’s budget, this staff increase is expected to generate $26 million in additional revenue.
Aside from new tax revenue and fees, the Conference Report also relies on $214 million from the state’s Stabilization Fund and transfers $31 million from various trust funds, such as the state’s Science, Technology, Engineering and Mathematics Grant Fund, to the General Fund.
Staff
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