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.: 6794

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 09 $

FY 10 $

Department of Revenue Services

GF - Revenue Loss

119.0 million

119.0 million

Department of Revenue Services

TF - Revenue Loss

3.9 million

3.9 million

Consumer Protection, Dept.

GF - None

See Below

See Below

Department of Revenue Services

TF - Revenue Loss

25.0 million

None

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.

Section 1 of the amendment eliminates 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.

Section 1 also caps the wholesale price for purposes of calculating the Petroleum Gross Earnings Tax at $2.97 per gallon. This is anticipated to result in an annual General Fund revenue loss of $88.2 million beginning in FY 09.

Section 2 allows for cash discounts to buyers of gasoline. This has no fiscal impact to the state or municipalities.

Section 3 is anticipated to result in a one-time Transportation Fund revenue loss of $25 million in FY 09

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.