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.

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.: 6791

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

Note: GF=General Fund; TF=Transportation Fund

Municipal Impact: None

Explanation

The amendment strikes Sections 1 and 2 of the underlying bill and eliminates the associated fiscal impact.

Sections 1 and 2 of 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 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.