OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http: //www.cga.ct.gov/ofa
SB-1000
AN ACT CONCERNING ADJUSTMENTS TO CERTAIN PETROLEUM PRODUCTS TAXES, PETROLEUM FRANCHISE AGREEMENTS, GASOLINE DISCOUNTS FOR CONSUMERS, HOME HEATING OIL AND PROPANE GAS CONTRACT DEPOSITS AND THE FUEL OIL CONSERVATION ACCOUNT.
AMENDMENT
LCO No.: 6787
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 09 $ |
FY 10 $ |
Department of Revenue Services |
GF - Revenue Loss |
30.8 million |
30.8 million |
Department of Revenue Services |
TF - Revenue Loss |
3.9 million |
3.9 million |
Department of Revenue Services |
GF - Indeterminate |
See Below |
See Below |
Note: GF=General Fund; TF=Transportation Fund
Explanation
The amendment strikes Sections 1 and 2 of the underlying bill and eliminates the associated fiscal impact.
Sections 1 and 2 of the amendment eliminate the increase in the Petroleum Companies Gross Earnings Tax from: (1) 7.0% to 7.5% scheduled to occur on 7/1/08 and (2) 7.5% to 8.1% scheduled to occur on 7/1/13. The estimated fiscal impact is: (1) a General Fund revenue loss of $30.8 million in FY 09 and annual losses of a similar magnitude between FY 10 and FY 13, and $68.5 million beginning in FY 14 and (2) a Special Transportation Fund loss of $3.9 million in each year between FY 09 and FY 13 and $8.1 million beginning in FY 14.
The amendment also caps the wholesale price for purposes of calculating the Petroleum Gross Earnings Tax at the level it is on the date the bill becomes law. Since it is not known what this wholesale price will be the fiscal impact of this provision cannot be determined.
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.