The
strong revenue growth is expected to continue in the final quarter
of the fiscal year. However, the growth will be blunted due to
bonus and accelerated depreciation changes during the last special
session and the Department of Revenue decreasing the amount of
income tax withheld from paychecks. Still, since it would take
negative growth of $90 million over the final quarter to reduce
revenue to the December estimate, it is virtually a lock that
revenue will exceed the expected $140 million in growth.
The REC will meet this
Friday, April 8, to revise the revenue estimates for FY 05 and FY
06. It will likely increase the estimates for both fiscal years.
By law, the Legislature cannot spend the increase in revenue and
must comply with the expenditure limitation based on the December
estimate.
If the supplemental appropriations
are held to $80 million, the ending balance will be at least $150
million. This money will go to replace the $150 million being
transferred out of the Cash Reserve Fund to fund the property tax
credits in FY 06.
Ways
& Means Update
Bills introduced in committee this week:
HSB 292 A study bill relating to the county recorders' county
land record information system project and providing an effective
date. 03-31-05 Subcommittee assigned, Kurtenbach, Huser and Tymeson.
H.J. 1045.
HSB 293 A study bill relating to taxation by making changes
relating to property tax, income tax, city and county budgets, and
providing effective dates and for the Act's applicability.
HSB 294 A study bill relating to the imposition of a tax on
municipal utility property for school foundation aid purposes,
including criminal and civil penalties, and including effective and
retroactive applicability date provisions.
HSB 295 A study bill providing for a tax on earned income of an
individual in lieu of the regular income tax, alternative income
tax, and the tax on lump sum distributions, and including effective
and retroactive applicability date provisions.
Bills passed out of
committee this week:
HF 794 – An Act relating to economic development, business,
workforce, and regulatory assistance and tax credits, and to state
developmental, research, and regulatory oversight, making
appropriations, and including effective date and applicability
provisions.
HSB 289 – An Act relating to property taxation by requiring
funding of essential services by cities and counties, modifying
property assessment guidelines, creating a property assessment
appeal board to hear appeals of the actions of local boards of
review, tying together the assessment limitations of certain classes
of property, and including a retroactive applicability date
provision.
HF 288 – An Act relating to the state school foundation program
by increasing the regular program foundation base, and providing an
effective date.
HF 56 – An Act relating to the exemption of sales and use taxes
on the purchase of precious metals and rare coins by dealers.
HSB 182 – An Act relating to the financing by cities of
telecommunications projects and facilities, including requirements
regarding feasibility studies and reports, requiring sealed bids and
city voter approval, prohibiting financing for an amount above
projected costs, and increasing the minimum voter approval rate for
such projects, and providing effective and retroactive applicability
dates.
HSB 205 – An Act providing for the property taxation of the
facilities of city operated cable communications systems and
including effective and applicability date provisions.
HSB 290 – An Act authorizing the rebate of state sales tax to
the owner or operator of a sanctioned automobile racetrack facility.
Week
in Review Archives