OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

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

SB-1392

AN ACT CONCERNING THE DIESEL FUEL TAX.

AMENDMENT

LCO No.: 8983

File Copy No.: 581

House Calendar No.: 637

Senate Calendar No.: 455

OFA Fiscal Note

State Impact:

Note: GF=General Fund; TF=Transportation Fund

Municipal Impact: None

Explanation

The amendment: (1) suspends the motor fuels tax on gasoline and diesel fuel upon passage through 9/10/07 and (2) transfer up to $127.44 million¹ from the resources of the General Fund to the Special Transportation Fund. The General Fund fiscal impact in FY 07 is a revenue loss of up to $127.44 million¹. There is no fiscal impact to the Special Transportation Fund in FY 07 and FY 08 because the revenue loss from the suspension of the motor fuels tax is offset by the revenue transfer from the General Fund.

The table below shows the impact to the Special Transportation Fund by fiscal year:

The FY 07 General Fund surplus is projected at $846.8 million. However, the amendment transfers up to $127.44 million¹ from the resources of the General Fund in FY 07, which will reduce the projected surplus to $719.36 million.

Section 18: The state would incur an estimated annual cost of more than $500, 000 for the Office of the Attorney General to perform its duties under the amendment. This cost reflects additional staffing (and associated fringe benefits and expenses) with the agency and expert consulting.

The Office of Policy and Management may incur minimal costs to adopt emergency regulations.

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.