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REVENUE ESTIMATING CONFERENCE Tax: Cigarette Tax Issue: Increasing the Distribution to the Moffitt Cancer Center Bill Number(S): HB5601

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REVENUE ESTIMATING CONFERENCE Tax: Cigarette Tax Issue: Increasing the Distribution to the Moffitt Cancer Center Bill Number(S): HB5601 REVENUE ESTIMATING CONFERENCE Tax: Cigarette Tax Issue: Increasing the distribution to the Moffitt Cancer Center Bill Number(s): HB5601 Entire Bill X Partial Bill: Section 8 Sponsor(s): Finance and Tax Subcommittee Month/Year Impact Begins: July 1, 2014 Date of Analysis: May 30, 2014 Section 1: Narrative a. Current Law: The current distribution to the H. Lee Moffitt Cancer Center is 2.75% of net cigarette tax collections each fiscal year, or 2.75% of net cigarette tax collections in Fiscal Year 2001‐02, whichever is greater. Because cigarette tax collections today are substantially lower than they were in Fiscal Year 2001‐02, the Moffitt distribution is currently a flat $10.6 million each fiscal year, which is equal to the amount it would have been in Fiscal Year 2001‐02. After all distributions from the cigarette tax are made, the remainder goes to General Revenue. b. Proposed Change: The bill increases the portion of net cigarette taxes distributed to the Moffitt Cancer Center from 2.75% to 4.04%. The provisions relating to the Fiscal Year 2001‐02 amount remain the same. The result is a $5 million increase in the Moffitt distribution from $10.6 million to $15.6 million each fiscal year. This will also result in a $5 million decrease to General Revenue each fiscal year. Section 2: Description of Data and Sources February 2014 Tobacco Tax and Surcharge Revenue Estimating Conference Section 3: Methodology (Include Assumptions and Attach Details) The cigarette tax forecast and the impact estimate assume that cigarette tax collections remain below Fiscal Year 2001‐02 levels, resulting in a flat distribution to the Moffitt Center of $15.6 million. Section 4: Proposed Fiscal Impact Moffitt Center General Revenue Cash Recurring Cash Recurring 2014‐15 5.0m 5.0m (5.0m) (5.0m) 2015‐16 5.0m 5.0m (5.0m) (5.0m) 2016‐17 5.0m 5.0m (5.0m) (5.0m) 2017‐18 5.0m 5.0m (5.0m) (5.0m) 2018‐19 5.0m 5.0m (5.0m) (5.0m) List of affected Trust Funds: Cigarette Tax Collection Trust Fund Section 5: Consensus Estimate (Adopted: 05/30/2014) The Conference adopted the proposed estimate. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recurring Cash Recurring 2014‐15 (4.6) (4.6) 4.6 4.6 0.0 0.0 0.0 0.0 2015‐16 (4.6) (4.6) 4.6 4.6 0.0 0.0 0.0 0.0 2016‐17 (4.6) (4.6) 4.6 4.6 0.0 0.0 0.0 0.0 2017‐18 (4.6) (4.6) 4.6 4.6 0.0 0.0 0.0 0.0 2018‐19 (4.6) (4.6) 4.6 4.6 0.0 0.0 0.0 0.0 568 FEB 2014 FORECAST Cigarette Net GR AB&T County Rev Moffitt Biomedical General Tax Refunds Tax Service Charge Trust Fund Sharing PMATF Center Research TF Revenue 2013-14 274.9 0.7 274.3 21.9 2.5 7.2 73.2 10.6 2.5 156.2 2014-15 269.4 0.3 269.1 21.5 2.4 7.1 71.8 10.6 2.5 153.1 2015-16 264.7 0.3 264.4 21.2 2.4 7.0 70.6 10.6 2.4 150.2 2016-17 260.7 0.3 260.4 20.8 2.3 6.9 69.5 10.6 2.4 147.8 2017-18 256.8 0.3 256.5 20.5 2.3 6.8 68.5 10.6 2.3 145.4 2018-19 252.9 0.3 252.6 20.2 2.3 6.7 67.4 10.6 2.3 143.1 DISTRIBUTIONS WITH CHANGE Cigarette Net GR AB&T County Rev Moffitt Biomedical General Tax Refunds Tax Service Charge Trust Fund Sharing PMATF Center Research TF Revenue 2013-14 274.9 0.7 274.3 21.9 2.5 7.2 73.2 15.6 2.5 151.3 2014-15 269.4 0.3 269.1 21.5 2.4 7.1 71.8 15.6 2.5 148.1 2015-16 264.7 0.3 264.4 21.2 2.4 7.0 70.6 15.6 2.4 145.2 2016-17 260.7 0.3 260.4 20.8 2.3 6.9 69.5 15.6 2.4 142.8 2017-18 256.8 0.3 256.5 20.5 2.3 6.8 68.5 15.6 2.3 140.4 2018-19 252.9 0.3 252.6 20.2 2.3 6.7 67.4 15.6 2.3 138.1 IMPACT OF CHANGE Cigarette Net GR AB&T County Rev Moffitt Biomedical General Tax Refunds Tax Service Charge Trust Fund Sharing PMATF Center Research TF Revenue 2013-14 5.00 (5.00) 2014-15 5.00 (5.00) 2015-16 5.00 (5.00) 2016-17 5.00 (5.00) 2017-18 5.00 (5.00) 2018-19 5.00 (5.00) 569 REVENUE ESTIMATING CONFERENCE Tax: Corporate Income / Insurance Premium Tax Issue: New Markets Bill Number(s): HB 5601 – Section 16 Entire Bill X Partial Bill: Section 16 Sponsor(s): Finance and Tax Subcommittee Month/Year Impact Begins: 7/1/2014 Date of Analysis: 5/30/2014 Section 1: Narrative a. Current Law: 288.9914 F.S., Department of Economic Opportunity (DEO) in consultation with Enterprise Florida shall designate industries which are eligible to receive low‐income community investments. The industries must have the greatest potential to create strong positive impacts on or benefits to the state, regional and local economies. However, DEO may allow investments in additional industries if it determines that such investments would have a positive impact on a community. The department may not approve a cumulative amount of qualified investments that may result in the claim of more than $178.8 million in tax credits during the existence of the program or more than $36.6 million in tax credits in a single state fiscal year. However, the potential for a taxpayer to carry forward an unused tax credit may not be considered in calculating the annual limit. The tax credit itself is equal to 39% of the purchase price of the investment and may be claimed as follows: 1. For the tax year, in which the qualified equity investment is initially made and the subsequent tax year, the credit will be zero 2. For the third credit allowance date, the credit will be 7% of the purchase price for the qualified equity investment 3. For the fourth, fifth, sixth and seventh credit allowance dates, the credit will be 8% of the purchase price for the qualified equity investment b. Proposed Change: Amends 288.9914(3)(c) to increase the total credit cap from $178.8 million to $216.34m. Section 2: Description of Data and Sources Insurance Premium Tax Forecast – General Revenue 2013‐12 DOR New Market Program Data Section 3: Methodology (Include Assumptions and Attach Details) An additional $96.3 million ($37.54m/0.39) over the current level of investment would reach the credit cap outlined in HB 5601. Section 4: Proposed Fiscal Impact High Middle Low Cash Recurring Cash Recurring Cash Recurring 2014‐15 $0.0m ($7.7m) 2015‐16 $0.0m ($7.7m) 2016‐17 ($6.7m) ($7.7m) 2017‐18 ($7.7m) ($7.7m) 2018‐19 ($7.7m) ($7.7m) List of affected Trust Funds: Insurance Premium Tax Grouping Section 5: Consensus Estimate (Adopted:05/30/2014): The Conference adopted the proposed estimate. GR Trust Local/Other Total Cash Recurring Cash Recurring Cash Recurring Cash Recurring 2014‐15 0.0 (7.7) 0.0 0.0 0.0 0.0 0.0 (7.7) 2015‐16 0.0 (7.7) 0.0 0.0 0.0 0.0 0.0 (7.7) 2016‐17 (6.7) (7.7) 0.0 0.0 0.0 0.0 (6.7) (7.7) 2017‐18 (7.7) (7.7) 0.0 0.0 0.0 0.0 (7.7) (7.7) 2018‐19 (7.7) (7.7) 0.0 0.0 0.0 0.0 (7.7) (7.7) HB 5601 Section 16 - New Markets A B C D E F G 1 Current Proposed Difference 2 Cumulative Cap $178.8 $216.34 $37.54 Forecast 3 FY Cap $36.6 $36.6 $0.0 Current REC Unused 4 Forecasted Credits 5 Investment Return Credit Credits (Remaining Capacity) FY Cap 6 2014-15 $96.3 0% $0.0 $30.4 $6.2 $36.6 7 2015-16 0% $0.0 $29.6 $7.1 $36.6 8 2016-17 7% $6.7 $20.8 $15.8 $36.6 9 2017-18 8% $7.7 $15.0 $21.6 $36.6 10 2018-19 8% $7.7 $9.0 $27.6 $36.6 11 2019-20 8% $7.7 12 2020-21 8% $7.7 REC Impact Conference - 05/30/2014 REVENUE ESTIMATING CONFERENCE Tax: Sales and Use Tax/Insurance Premium Tax/Corporate Income Tax Issue: Community Contributions Tax Credits Extension Bill Number(s): HB 5601 Entire Bill X Partial Bill: Section 9 & Section 15 Sponsor(s): Finance and Tax Subcommittee Month/Year Impact Begins: July 1, 2014 Date of Analysis: 5/23/2014 Section 1: Narrative a. Current Law: The community contribution tax credit may be claimed against the sales and use tax, corporate income tax, or insurance premium tax. It is scheduled to sunset on June 30, 2015. b. Proposed Change: The total amount of tax credit which may be granted for the community contribution tax credit is increased to $18.4m from $10.5m for projects that provide homeownership opportunities for low‐income or very low‐income households and $3.5m annually for all other projects.
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