3 Under Act 9, $21,095,800 GPR is provided for this purpose in 1999-00. Funding in 2000-01 ($21,095,800) is not provided at this time.
4 Under Act 9, $226,000 GPR is provided for this purpose in 1999-00. Funding in 2000-01 ($226,700) is not provided at this time.
5 The SEG funding indicated was provided on September 16, 1999, under s. 13.10 of the statutes. In addition, $43,300 GPR is provided under Act 9 for this purpose in 1999-00.
6 Estimated amount based on 1999 Act 5 provisions.
7 Estimated amounts based on constitutional requirement and 1999 Act 5 provisions.
8 Opening balance, net proceeds, interest earnings and gaming-related revenue.
9 Restoration of lottery general program operations funding in 2000-01 ($21,095,800 SEG) and DOJ enforcement funding in 2000-01 ($226,700 SEG) would reduce the estimated lottery and gaming credit amount in 2000-01 to $109,118,600.
10 Under Act 9, $15,000,000 GPR is provided for this purpose in 1999-00.
FIGURE 12
1999-01 Lottery Fund Expenditures*
Percent
Amount of Total
Operating Expenditures ($530,227,400 ) (59.7%)
Prizes 486,058,600 54.7
Retailer Compensation 30,573,800 3.5
Vendor Payments 12,419,000 1.4
Appropriations to DOJ and DOR 1,176,000 0.1
Appropriations for Tax Relief (358,036,400 ) (40.3)
Lottery Property Tax Credit 343,036,400 38.6
Farmland Tax Relief Credit 15,000,000 1.7
TOTAL $888,263,800 100.0%
*Figure 12 reflects only segregated lottery fund expenditure estimates (as of January, 2000) and does not include lottery activities funded from the general fund in 1999-00.
GENERAL FUND TAXES
1. GENERAL FUND TAX CHANGES
The following table outlines the general fund tax changes recommended by the Governor, Joint Committee on Finance and Legislature along with the estimated fiscal effect in the 1999-01 biennium. The next column shows the tax changes under Act 9 which include the effect of the Governor's partial vetoes. The final column shows the tax changes through Act 10 (the sales tax rebate legislation) following the Governor's vetoes. The $700 million sales tax rebate is not shown in the table because the rebate will be paid from a sum sufficient appropriation rather than accounted for as a reduction in tax revenues. (A summary of the sales tax rebate legislation follows the "General Fund Taxes" section of this document.) The items relating to the integrated tax system, nexus investigations, temporary events and delinquent tax measures are summarized under "Revenue -- Tax Administration."
1999-01 General Fund Tax Changes--Biennial Fiscal Effects
(In Millions)
Joint
Governor Finance Legislature Act 9 Act 10
Individual Income Tax
Income Tax Modifications -$289.00 -$317.90 -$474.20 -$718.80 -$78.00
Credit for Military Income 0.00 0.00 -0.26 -0.26 -0.26
Taxation of Trusts 0.00 -0.30 0.00 0.00 0.00
Internal Revenue Code Update 0.00 6.99 6.99 6.99 6.99
Delinquent Tax Measures 0.00 5.10 5.10 5.10 5.10
Corporate Income Tax
Single Sales Apportionment -74.60 -12.50 0.00 0.00 0.00
Combined Reporting 70.10 0.00 0.00 0.00 0.00
LLCs and Partnerships 0.00 12.50 12.50 0.00 0.00
Nexus Investigations 0.31 0.31 0.31 0.31 0.31
Internal Revenue Code Update 0.00 15.08 15.08 15.08 15.08
Delinquent Tax Measures 0.00 0.63 0.63 0.63 0.63
Activity Not Creating Nexus 0.00 0.00 -0.75 -0.75 -0.75
General Sales and Use Tax
Integrated Tax System 4.78 4.78 4.78 4.78 4.78
Timeshare Property 2.64 0.00 -0.16 -0.16 -0.16
Late Filing Fee 2.53 1.27 1.27 1.27 1.27
Nexus Investigations 1.00 1.00 1.00 1.00 1.00
Temporary Events 1.04 1.04 1.04 1.04 1.04
Direct Marketers Agreements 0.00 8.30 8.30 8.30 8.30
Occasional Vehicle Sales 0.00 0.41 0.41 0.41 0.41
Delinquent Tax Measures 0.00 3.22 3.22 3.22 3.22
Farm Electricity 0.00 0.00 -2.90 -2.90 -2.90
Railroad Tracks 0.00 0.00 -0.47 0.00 0.00
Joint
Governor Finance Legislature Act 9 Act 10
Public Utility
Car Line Companies -$0.30 $0.00 $0.00 $0.00 $0.00
Extend Current Computer Exemption -0.15 -0.08 -0.08 -0.08 -0.08
Expand Computer Exemption -0.08 0.00 0.00 0.00 0.00
Transition Fee Credit 0.00 -0.87 -0.87 -0.87 -0.87
Postpone Current Computer Exemption 0.00 0.00 0.00 0.00 0.00
Excise Taxes
Convert Tobacco Products Tax to Excise 0.00 0.88 0.88 0.88 0.88
Cigarette Tax Discount 0.00 0.00 -0.95 0.00 0.00
Total -$281.73 -$270.14 -$419.13 -$674.81 -$34.01
Individual and Corporate Income Taxes
1. INDIVIDUAL INCOME TAX MODIFICATIONS [LFB Papers 100 thru 109]
Governor: Modify the individual income tax structure by federalizing the treatment of social security benefits, increasing the sliding scale standard deduction, creating personal exemptions, creating a fourth income tax bracket, reducing the income tax rates, eliminating miscellaneous deductions from the itemized deduction credit, increasing the married couple credit, eliminating certain income tax credits and making withholding table adjustments. The administration estimates that these modifications would reduce individual income tax revenue by $289.0 million in 2000-01. On a tax year basis, the Governor's proposal would reduce income tax revenues by $168 million in 2000 and $269 million in 2001. The $289 million estimate for 2000-01 also includes $121 million from the proposed withholding table adjustment on July 1, 2000, as described later in this summary.
The administration did not provide a fiscal estimate of each income tax modification on an individual basis because of the interaction of the different provisions. For example, the estimated cost of eliminating the working families credit would be greatly offset due to the proposed increase in the standard deduction, the creation of the personal exemptions and the lower income tax rates.