This bill proposes an amendment to the distribution of funds from the Business Profits Tax (BPT) by increasing the percentage of revenue deposited into the Education Trust Fund from 41 59 percent. The commissioner will determine the revenue produced by the BPT for each fiscal year and certify the amounts to the state treasurer for deposit in 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 $158.8 million for the Education Trust Fund based on the FY 2025 plan revenue of $881.3 million. While the total BPT revenue collected will remain unchanged, the different fund splits between the BPT and the Business Enterprise Tax (BET) may lead to complexities in revenue reporting and necessitate reallocations between funds in future fiscal years. The Department of Revenue Administration has indicated that the bill will not incur additional administrative costs beyond what can be absorbed by the department.

Statutes affected:
Introduced: 77-A:20-a