This bill proposes an amendment to the distribution of revenue from the Business Enterprise Tax (BET) by increasing the percentage deposited into the Education Trust Fund from 41 59 percent. The commissioner will be responsible for determining the revenue produced by the BET for each fiscal year and certifying the amounts to the state treasurer for deposit into the Education Trust Fund by October 1 of that year. The bill is set to take effect on July 1, 2025. The fiscal impact of this change is expected to result in a decrease in General Fund revenue and a corresponding increase in Education Trust Fund revenue, with an estimated increase of $68 million for the Education Trust Fund based on projected FY 2025 revenue of $377.7 million. While the total BET revenue collected will remain unchanged, the reallocation of funds may lead to discrepancies in revenue reporting between the two funds due to the differing splits. The Department of Revenue Administration has indicated that the bill will not incur additional administrative costs that cannot be absorbed within existing resources.

Statutes affected:
Introduced: 77-E:14