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Revenue Changes

Posted on April 20, 2018

  • Some items in the enacted budget we recognize cannot be achieved at this point. Therefore, we have to first reflect what cannot be achieved in the enacted budget to better estimate what revenue we are actually working with. We propose the following:
    • Eliminate the $17.8 million carry forward from FY 2018 into FY 2019 (which must be used in FY 18 deficit mitigation).
    • The following were compromise proposals included in the bipartisan budget that the governor is counting on for funding. However OPM has never identified these fee increases or expenditures. Therefore, we are choosing not to implement these policies which OPM has failed to define.
      • Eliminate the requirement to increase tax expenditures by $10 million.
      • Eliminate $20 million in fee increases.

  • This plan also accepts the following revenue rebalancing:
    • Reflect an additional $6 million in new revenue projected by OFA (result of a positive projection of withholding of $53 million and negative reduction to corporate tax of $47 million. Results in a net increase of $6 million).
    • Increase the unitary tax cap to $3.5 million for non-manufacturers. Applies to mostly big box retailers (Walmart, Target, etc.).       The governor recommended to completely uncap the increase in tax liability for all non-manufacturers.
    • Eliminate single payer tax exemption for co-generation facilities (this was a special tax exemption created for one facility in a district).
  • This plan also reduces the 10% corporate tax surcharge to 8%, in accordance with the governor.

Back to the full plan…