DEPARTMENT
OF
AUDITS
AND
ACCOUNTS
270 Washington Street, S.W., Suite 4-114
Atlanta, Georgia 30334-8400
270 Washington Street, S.W., Suite 4-114
Atlanta, Georgia 30334-8400
Russell W.
Hinton
State Auditor
(404) 656-2174
State Auditor
(404) 656-2174
January
30, 2007
Honorable Larry O’Neal,
Chairman
House Ways and Means Committee
State Capitol, Room 133
Atlanta, Georgia 30334
House Ways and Means Committee
State Capitol, Room 133
Atlanta, Georgia 30334
SUBJECT: Fiscal
Note
House
Bill 162 (LC 18 6055)
Dear
Chairman O’Neal:
This
bill exempts from the state sales tax the sale of tangible personal property
used in direct connection with the construction of a performing arts
amphitheater. An amphitheater, as defined in the bill, refers to a facility
constructed after the effective date of bill, has costs in excess of $30
million, and consists of more than 60,000 square feet of space. The bill
applies to purchases occurring after May 31, 2007, and before July 1, 2008.
The
Georgia State University Fiscal Research Center provided the following estimate
of the revenue impact of this bill:
The
estimate assumes that only one facility in the state would be eligible for the
exemption specified in the legislation. It is assumed that the exemption does
not apply to purchases of property used to maintain or upgrade existing
performing arts centers.
Based
on published estimates in the range of $40 million of the expected cost of the
facility, the revenue impact to the state from the loss of state sales tax
revenue is estimated to be approximately $2 million in fiscal year 2008. The
revenue impact to the local governments from the loss of local sales tax revenue
is estimated to be approximately $1 million in fiscal year 2008. A negligible
revenue effect is expected for fiscal year 2007 for both the state and local
governments.
Sincerely,
/s/ Russell W.
Hinton
State Auditor
State Auditor
/s/ Shelley
C. Nickel,
Director
Office of Planning and Budget
Office of Planning and Budget