| Date Requested:March 29, 2005 Time Requested:02:41 PM |
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| FUND(S) Forestry Tax Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| Other Fund Forestry Tax Fund | |||
Legislation creates:
Neither Program nor Fund | |||
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to reduce the severance tax rate on timber from three and twenty-two hundredths percent to one and twenty-two hundredths percent on December 31, 2005.
According to our interpretation and based upon available data, passage of this bill would result in a net loss to the Forestry Tax Fund of approximately $800,000 in 2006, and $2.0 million each year thereafter. Additional administrative costs to the State Tax Department associated with this bill would be minimal. |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2005 Increase/Decrease (use"-") |
2006 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 0 | 0 | 0 |
| Personal Services | 0 | 0 | 0 |
| Current Expenses | 0 | 0 | 0 |
| Repairs and Alterations | 0 | 0 | 0 |
| Assets | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| 2. Estimated Total Revenues | 0 | -800,000 | -2,000,000 |
|
3. Explanation of above estimates (including long-range effect):
According to our interpretation and based upon available data, passage of this bill would result in a net loss to the Forestry Tax Fund of approximately $800,000 in 2006, and $2.0 million each year thereafter.
Additional administrative costs to the State Tax Department associated with this bill would be due to the printing and promotional expense of notifying taxpayers. |