Revenue Changes:
· Raises $69.3 million in New Revenues
· Redistributes revenues between Education, General and Transportation funds to simply fund flows
Revenue Increases
Sales & Use – additional 1%
43.2
Beer @ 6%
7.3
Soft Drinks @ 6%
3.0
Telecommunications @6%; repeal exemption
9.9
Property Transfer Tax – NR @1.75%
5.9
TOTAL
69.3
FY 2005 fund changes:
Education Fund will consist of:
1. Sales Tax 1/3 (2 of 6%)
2. Purchase and Use tax 1/3 (2 of 6%)
3. Lottery including Powerball
4. General Fund Transfers
5. Property taxes and other smaller existing
General Fund— Net will absorb $2.8 m additional transfer to Education Fund
1. Remainder of Sales Tax (4 of 6%)
2. All former General Fund splinter taxes that went into the Education Fund (e.g. rooms & meals, bank franchise, corporate, securities, telecom)
Transportation Fund-- Gains $465,000 ($200,000 in forecast = net loss to GF)
1. Remainder of Purchase and Use Tax (4 of 6%)
2. All gasoline and car rental tax that formerly went to Education Fund
3. JTOC percent reduced from 20.5% to 19% (to try to keep this proposal revenue neutral)