OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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HB-6001

AN ACT IMPLEMENTING PROVISIONS OF THE STATE BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2012.

AMENDMENT

LCO No.: 5796

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 13 $

FY 14 $

Department of Revenue Services

GF - Revenue Loss

42.0-44.0 million

None

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment lowers, from 7.0% to 2.0%, the Petroleum Products Gross Earnings Tax (PGET) rate on gasoline or gasohol for July and August of 2012. Assuming approximately 269, 270, 000 taxable gallons are sold during this period, this is estimated to result in a revenue loss of $42.0 million-$44.0 million in FY 13 only.

To the extent that lower prices result in additional sales occurring within the state, the revenue loss could be reduced.

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.