OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-6652

AN ACT IMPLEMENTING THE REVENUE ITEMS IN THE BUDGET AND MAKING BUDGET ADJUSTMENTS, DEFICIENCY APPROPRIATIONS, CERTAIN REVISIONS TO BILLS OF THE CURRENT SESSION AND MISCELLANEOUS CHANGES TO THE GENERAL STATUTES.

AMENDMENT

LCO No.: 8593

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Department of Revenue Services

GF - Reduces Revenue Gain in Bill

138.4 million

144.7 million

Department of Revenue Services

GF - Reduces Revenue Loss in Bill

110.2 million

116.5 million

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment results in a revenue loss of $138.4 million in FY 12 and $144.7 million in FY 12 by decreasing the sales and use tax rate from 6.35% to 6.0%. The amendment also results in a revenue gain of $110.2 million in FY 12 and $116.5 million in FY 13 by eliminating the Earned Income Tax Credit. The net impact of the amendment is a revenue loss of $28.2 million in both FY 12 and FY 13.

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. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.