Multiple Agency Fiscal Note Summary - Equitable access to credit, 1015 2S HB (Final 2/28/2021)
Summary
A Multiple Agency Fiscal Note Summary for bill number 1015 2S HB, titled Equitable access to credit, marked Final 2/28/2021, followed by individual agency fiscal notes. The rollup lists estimated cash receipts for the Department of Revenue of (19,000,000) for 2021-23 and (16,000,000) for each of 2023-25 and 2025-27, and estimated operating expenditures totaling 669,640 for 2021-23. The Department of Commerce note says the bill directs Commerce to create and administer the Equitable Access to Credit Program, with grants awarded to qualified lending institutions. The Department of Revenue narrative says Section 2 creates a business and occupation tax credit for contributions to the program and sets a July 1, 2031 expiration date.
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Multiple Agency Fiscal Note Summary
Bill Number: 1015 2S HB Title: Equitable access to credit
Estimated Cash Receipts
Agency Name 2021-23 2023-25 2025-27
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Department of (19,000,000) (19,000,000) (19,000,000) (16,000,000) (16,000,000) (16,000,000) (16,000,000) (16,000,000) (16,000,000)
Revenue
Total $ (19,000,000) (19,000,000) (19,000,000) (16,000,000) (16,000,000) (16,000,000) (16,000,000) (16,000,000) (16,000,000)
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Joint Legislative .2 44,600 44,600 44,600 .0 16,200 16,200 16,200 .0 16,200 16,200 16,200
Audit and Review
Committee
Department of 1.7 420,740 420,740 420,740 1.7 412,748 412,748 412,748 1.7 415,380 415,380 415,380
Commerce
Department of .6 204,300 204,300 204,300 .2 40,600 40,600 40,600 .2 40,600 40,600 40,600
Revenue
Total $ 2.5 669,640 669,640 669,640 1.9 469,548 469,548 469,548 1.9 472,180 472,180 472,180
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Joint Legislative Audit .0 0 0 .0 0 0 .0 0 0
and Review Committee
Department of Commerce .0 0 0 .0 0 0 .0 0 0
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
Prepared by: Ramona Nabors, OFM Phone: Date Published:
(360) 902-0547 Final 2/28/2021
FNPID: 62564
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 1015 2S HB Title: Equitable access to credit Agency: 014-Joint Legislative Audit
and Review Committee
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.3 0.0 0.2 0.0 0.0
Account
General Fund-State 001-1 36,500 8,100 44,600 16,200 16,200
Total $ 36,500 8,100 44,600 16,200 16,200
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Tracey OBrien Phone: 360-786-7152 Date: 02/18/2021
Agency Preparation: Eric Whitaker Phone: 3607865171 Date: 02/19/2021
Agency Approval: Keenan Konopaski Phone: 360-786-5187 Date: 02/19/2021
OFM Review: Gaius Horton Phone: (360) 819-3112 Date: 02/21/2021
Form FN (Rev 1/00) 166,702.00 Request # 47-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1015 2S HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
This bill directs the Department of Commerce (Commerce) to create and administer the Equitable Access to
Credit Program (EACP). The purpose of the program is to provide access to credit for historically underserved
communities via grants awarded to qualified lending institutions.
Section 1 identifies the bill as the Washington Equitable Access to Credit Act.
Section 2 creates a credit against the business and occupation (B&O) tax for contributions made to the EACP,
describes the operation and administration of the program, and sets a July 1, 2031 expiration date. Total credits
claimed may not exceed $8 million in any calendar year and the amount claimed by any one taxpayer may not
exceed $1 million in the tax reporting period.
Section 3 provides direction regarding the creation of the EACP and describes criteria for identifying qualified
lending institutions, sets forth provisions to govern the program and allocation of funds, permits program
administration to be by contract, and directs the Department of Commerce to develop guidelines and rules.
Subsection 8 requires qualified lending institutions to submit an anonymized report to Commerce detailing the
various information:
a) Loan/investment origination date.
b) Loan/investment amount.
c) Total cost of the project.
d) Interest rate and type.
e) Loan term.
f) Projected permanent full-time equivalent jobs to be created.
g) Whether the loan/investment included a guarantee program.
h) North American Industry Classification System (NAICS) code.
i) Characteristics of the borrowing entity.
Section 4 directs the State Treasurer to create the EACP account.
Section 5 is the tax preference performance statement. The program is intended to create or retain jobs and
encourage community and economic development in communities that have historically lacked access to capital.
The public policy objective of the program is to encourage community and economic development by investing
in small, underserved businesses. The measure of effectiveness for the tax credit program is changes in access to
credit in target communities.
Subsection 4 identifies six metrics that JLARC should consider:
a) The number and aggregate amount of loans and investments originated under the program.
b) The overall match invested by grant recipients.
c) The balance sheet growth of community development financial institutions (CDFIs) qualifying to receive
grants from the program.
d) Whether participants achieved balance sheet growth while participating in the program.
e) The percent of CDFIs that received funding from the program.
f) The level of ongoing demand for funding from the program.
Equitable access to credit 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 166,702.00 Request # 47-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1015 2S HB
The Legislature intends to extend the expiration date if the review finds a net positive impact in: (1) communities
historically underserved by credit and (2) state and local tax revenues.
Section 6 provides a July 1, 2031 expiration date for the chapter.
Section 7 identifies Sections 1, 3, 4, and 6 as a new chapter in Title 43 RCW.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
The bill requires JLARC staff to assess whether the program has had a net positive impact on investment. It
outlines several measures for this assessment.
JLARC staff would contact and work with the Departments of Commerce and Revenue immediately after
passage of the bill to ensure project contacts are established and any other necessary data for JLARC staff’s
future evaluation needs are identified and collected.
The evaluation would likely take place in 2029, two years before the expiration date included in the bill. Most of
this work would occur outside the fiscal note period. The fiscal note details reflect planning and data collection in
preparation for the evaluation.
This tax preference review may require additional resources. The audit will be conducted and presented to
JLARC consistent with the processes used for other tax preference reviews. Based on all tax preference
legislation that is passed, JLARC may subsequently determine that it can absorb the costs for this proposed bill in
its base budget, if the workload of other enacted tax preference legislation does not exceed current staffing.
JLARC will assess all tax preference reviews mandated in the 2021 legislative session.
This audit will require an estimated 4 audit months.
JLARC Audit Months: JLARC calculates its staff resources in "Audit Months" to estimate the time and effort to
undertake and complete its studies. An "Audit Month" reflects a JLARC analyst’s time for a month, together with
related administrative, support, and goods/services costs. JLARC’s anticipated 2021-23 costs are calculated at
approximately $20,300 per audit month.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
001-1 General Fund State 36,500 8,100 44,600 16,200 16,200
Total $ 36,500 8,100 44,600 16,200 16,200
Equitable access to credit 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 166,702.00 Request # 47-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1015 2S HB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.3 0.2
A-Salaries and Wages 22,900 5,100 28,000 10,200 10,200
B-Employee Benefits 7,200 1,600 8,800 3,200 3,200
C-Professional Service Contracts
E-Goods and Other Services 5,900 1,300 7,200 2,600 2,600
G-Travel 500 100 600 200 200
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 36,500 8,100 44,600 16,200 16,200
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Research Analyst 113,827 0.2 0.1
Support staff 77,705 0.1 0.1
Total FTEs 0.3 0.2 0.0
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Equitable access to credit 014-Joint Legislative Audit and Review Committee
Form FN (Rev 1/00) 166,702.00 Request # 47-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1015 2S HB
Individual State Agency Fiscal Note
Bill Number: 1015 2S HB Title: Equitable access to credit Agency: 103-Department of
Commerce
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 1.7 1.7 1.7 1.7 1.7
Account
General Fund-State 001-1 214,366 206,374 420,740 412,748 415,380
Total $ 214,366 206,374 420,740 412,748 415,380
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
X Requires new rule making, complete Part V.
Legislative Contact: Tracey OBrien Phone: 360-786-7152 Date: 02/18/2021
Agency Preparation: Karen McArthur Phone: 360-725-4027 Date: 02/23/2021
Agency Approval: Joyce Miller Phone: 360-725-2710 Date: 02/23/2021
OFM Review: Gwen Stamey Phone: (360) 902-9810 Date: 02/23/2021
Form FN (Rev 1/00) 166,817.00 Request # 146-700-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1015 2S HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
Differences between the second substitute bill and the substitute bill:
Section 2 subsection (b) adds any amount of tax credit otherwise allowable under this section not claimed by the
person in any calendar year may be carried forward and claimed against a person’s tax liability for the next
succeeding calendar year; and any credit not used in that next succeeding calendar year may be carried forward
and claimed against the person’s tax liability for the second succeeding calendar year, but may not be carried
over for any calendar year thereafter.
Section 2 is amended changing subsection (7) stating the maximum credit that may be earned for each calendar
year under this section for a person is limited to the lesser of $1,000,000 or an amount equal to 100 percent of the
contributions made by the person to the equitable access to credit program.
Section 3 is amended stating subject to appropriation the Department of Commerce shall create and operate the
Equitable Access to Credit Program. Subsection 2 (d) adds no more than 30 percent of program revenues may be
used for staffing and other administrative costs. Subsection (5) adds criteria that must be considered in ranking
applications and allows the department to include additional criteria as it deems helpful in achieving the goal of
ensuring access to credit to underserved communities across the state. The section is amended to allow the
department to contract for all or part of the administration of this section and adopt rules as necessary to
implement this section.
Summary of the substitute bill:
Section 3 adds a new section, (1) subject to appropriation requires the Department of Commerce to create and
operate the equitable access to credit program, governed by guidelines and rules adopted by the department, for
grant awards to qualified lending institutions to provide access to credit for historically underserved
communities; (2) outlines the requirements of the program; (3) outlines the requirements the qualified lending
institution must meet in order to receive a grant award; (4) creates a review committee, the department is
encouraged to achieve a fair geographic balance in the composition of the committee, and for convening and
staffing the review committee; (5) provides criteria for the review committee to follow in making awards; (6)
allows the department to award grants beginning six months after the first tax credits are claimed until the
expiration of this chapter; (7) requires the qualified lending institution to re-loan, repaid funds consistent with the
chapter for a period of ten years from the date of the grant award; (8) requires the funded qualified lending
institution to report to the department by June 30 of each year with data outlined in the chapter; (9) requires the
department to submit a report to the appropriate legislative committees by September 15 of each year with data
outlined in the chapter; (10) allows the department to contract all or part of the administration; and (11) allows
the department to adopt rules as necessary to implement this section.
Section 4 creates the equitable access to credit program account in the custody of the state treasurer and requires
the department to deposit all receipts from contributions into the account. Only the department director or
designee may authorize expenditures from the account.
Section 6 provides an expiration date of July 1, 2031 for this chapter.
Equitable access to credit 103-Department of Commerce
Form FN (Rev 1/00) 166,817.00 Request # 146-700-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1015 2S HB
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
The cash receipts impact associated with this proposed legislation is indeterminate. The department has no
historical data to support a reasonable set of assumptions regarding contributions.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
Section 3
The department estimates the following will be needed to accomplish the requirements of this legislation:
1.0 FTE Commerce Specialist 4 (2,088 hours) in FY22 to create the program to include program guidelines and
rules, and coordinate with the Department of Revenue; provide stakeholder outreach, screen and coordinate the
application and submittal process and recruit, convene and staff the review committee, review application
materials, and determine applicant eligibility.
1.0 FTE Commerce Specialist 4 (2,088 hours) in FY23-FY27 to operate the program, update program guidelines,
market the program, convene and staff review committee, create and approve reporting forms, track match, and
draft and submit the a report to the legislature.
0.5 FTE Administrative Assistant 2 (1,044 hours) in FY22-FY27 to assist the Commerce Specialist 4 with
rulemaking, review committee scheduling, data collection and drafting the annual report.
Salaries and Benefits
FY22-FY27 $139,273 per fiscal year
Goods and Services, Travel and Equipment
FY22: $27,740
FY23-FY25:$19,748 per fiscal year
FY26: $22,380
FY27: $19,748 per fiscal year
Intra-agency Reimbursements:
FY22-FY27: $47,353 per fiscal year
Note: Includes travel associated with review committee meetings. Standard goods and services costs include
supplies and materials and employee development and training. Intra-agency Reimbursement-agency
administration costs (e.g., payroll, HR, IT) are funded under a federally approved cost allocation plan.
=========================
Total Costs
FY22: $214,366
FY23-FY25: 206,374 per fiscal year
Equitable access to credit 103-Department of Commerce
Form FN (Rev 1/00) 166,817.00 Request # 146-700-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1015 2S HB
FY26: $209,006
FY27: $206,374
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
001-1 General Fund State 214,366 206,374 420,740 412,748 415,380
Total $ 214,366 206,374 420,740 412,748 415,380
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 1.7 1.7 1.7 1.7 1.7
A-Salaries and Wages 100,044 100,044 200,088 200,088 200,088
B-Employee Benefits 39,229 39,229 78,458 78,458 78,458
C-Professional Service Contracts
E-Goods and Other Services 19,748 19,248 38,996 38,496 38,496
G-Travel 500 500 1,000 1,000 1,000
J-Capital Outlays 7,492 7,492 2,632
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements 47,353 47,353 94,706 94,706 94,706
9-
Total $ 214,366 206,374 420,740 412,748 415,380
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Administrative Assistant 2 44,184 0.5 0.5 0.5 0.5 0.5
Administrative Services - Indirect 69,552 0.2 0.2 0.2 0.2 0.2
Commerce Specialist 4 77,952 1.0 1.0 1.0 1.0 1.0
Total FTEs 1.7 1.7 1.7 1.7 1.7
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
Equitable access to credit 103-Department of Commerce
Form FN (Rev 1/00) 166,817.00 Request # 146-700-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1015 2S HB
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Identify provisions of the measure that require the agency to adopt new administrative rules or repeal/revise existing rules.
Section 3 requires the department to adopt guidelines and rules to implement this act. The department will adopt rules
governing the review of application materials and revenue impact assessments, and the determinations of applicant
eligibility.
Equitable access to credit 103-Department of Commerce
Form FN (Rev 1/00) 166,817.00 Request # 146-700-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 1015 2S HB
Department of Revenue Fiscal Note
Bill Number: 1015 2S HB Title: Equitable access to credit Agency: 140-Department of
Revenue
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
Account FY 2022 FY 2023 2021-23 2023-25 2025-27
GF-STATE-State (11,000,000) (8,000,000) (19,000,000) (16,000,000) (16,000,000)
01 - Taxes 05 - Bus and Occup Tax
Total $ (11,000,000) (8,000,000) (19,000,000) (16,000,000) (16,000,000)
Estimated Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.9 0.3 0.6 0.2 0.2
Account
GF-STATE-State 001-1 173,100 31,200 204,300 40,600 40,600
Total $ 173,100 31,200 204,300 40,600 40,600
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
X Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Tracey OBrien Phone: 360-786-7152 Date: 02/18/2021
Agency Preparation: Tyler McLeod Phone: 360-534-1531 Date: 02/26/2021
Agency Approval: Don Gutmann Phone: 360-534-1510 Date: 02/26/2021
OFM Review: Ramona Nabors Phone: (360) 902-0547 Date: 02/28/2021
Request # 1015-3-1
Form FN (Rev 1/00) 167,275.00 1 Bill # 1015 2S HB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe, by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
Note: This fiscal note reflects language in 2SHB 1015, 2021 Legislative Session.
COMPARISON OF SHB 1015 (H-0511.1) WITH 2SHB 1015 (H-1025.2):
2SHB 1015 (H-1025.2) specifies the credit may be carried over for two years, makes the program subject to appropriation, and
adjusts various administrative provisions.
PROPOSAL:
This proposal creates a business and occupation (B&O) tax credit for amounts contributed to the equitable access to credit
program. This credit is subject to appropriation.
No taxpayer may claim more than $1 million in a calendar year and the amount of credit claimed cannot exceed the amount of
B&O tax due. No refunds may be granted for unused credits. However, credits may be carried over for two years.
Total credits claimed per calendar year may not exceed $8 million.
This section expires July 1, 2031.
EFFECTIVE DATE:
This bill takes effect on July 1, 2021.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
ASSUMPTIONS:
- This proposal is effective July 1, 2021, impacting 11 months of collections in Fiscal Year 2022.
- The annual $8 million cap is met each year.
- These impacts assume that the Legislature will appropriate funds to implement this proposal.
REVENUE ESTIMATES:
This bill decreases state revenues by an estimated $11 million in the 11 months of impacted collections in Fiscal Year
2022, and by $8 million in Fiscal Year 2023, the first full year of impacted collections.
This bill does not impact local revenues.
TOTAL REVENUE IMPACT:
State Government (cash basis, $000):
FY 2022 - ($ 11,000)
FY 2023 - ($ 8,000)
FY 2024 - ($ 8,000)
FY 2025 - ($ 8,000)
FY 2026 - ($ 8,000)
FY 2027 - ($ 8,000)
Request # 1015-3-1
Form FN (Rev 1/00) 167,275.00 2 Bill # 1015 2S HB
FNS062 Department of Revenue Fiscal Note
Local Government, if applicable (cash basis, $000): None
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the method
by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time and
ongoing functions.
ASSUMPTIONS:
- This bill affects less than 50 taxpayers.
- Expenditures assume the Legislature will appropriate funds to implement this bill.
FIRST YEAR COSTS:
The Department of Revenue will incur total costs of $173,100 in Fiscal Year 2022. These costs include:
Labor Costs – Time and effort equates to 0.9 FTEs.
- Test system changes.
- Create an electronic special notice for affected taxpayers and update information on the Department of Revenue's
website.
- Respond to additional taxpayer questions, work with difficult tax issues, and review and prepare refunds and
assessments.
- Create taxpayer training program, reports, and maintain system changes.
Object Costs - $70,400.
- Contracted system changes.
SECOND YEAR COSTS:
The Department of Revenue will incur total costs of $31,200 in Fiscal Year 2023. These costs include:
Labor Costs – Time and effort equates to 0.3 FTEs.
- Respond to additional taxpayer questions, work with difficult tax issues, and review and prepare refunds and
assessments.
- Maintain system changes.
ONGOING COSTS:
Ongoing costs for the 2023-25 Biennium equal $40,600 and include similar activities described in the second year costs.
Time and effort equates to 0.2 FTEs.
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.9 0.3 0.6 0.2 0.2
A-Salaries and Wages 62,300 20,200 82,500 26,200 26,200
B-Employee Benefits 22,400 7,300 29,700 9,400 9,400
C-Professional Service Contracts 70,400 70,400
E-Goods and Other Services 11,700 3,300 15,000 4,600 4,600
J-Capital Outlays 6,300 400 6,700 400 400
Total $ $173,100 $31,200 $204,300 $40,600 $40,600
Request # 1015-3-1
Form FN (Rev 1/00) 167,275.00 3 Bill # 1015 2S HB
FNS062 Department of Revenue Fiscal Note
III. B - Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in Part I
and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
EXCISE TAX EX 3 59,688 0.1 0.1 0.1 0.1 0.1
IT QA-JOURNEY 85,644 0.1 0.1
MGMT ANALYST4 70,956 0.4 0.2 0.3 0.1 0.1
TAX INFO SPEC 4 64,332 0.3 0.2
Total FTEs 0.9 0.3 0.6 0.2 0.2
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and dexcribe potential financing methods
NONE
None.
Part V: New Rule Making Required
Request # 1015-3-1
Form FN (Rev 1/00) 167,275.00 4 Bill # 1015 2S HB
FNS062 Department of Revenue Fiscal Note
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