H.480 House Ways and Means
Education Finance Proposal

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)