Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
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BILL: |
DATE: |
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STATUS: |
SPONSOR: |
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LOCAL IMPACT
STATEMENT REQUIRED: |
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STATE FUND |
FY 2008 |
FY 2009 |
FUTURE YEARS |
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General Revenue Fund |
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Revenues |
- 0 - |
- 0 - |
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Expenditures |
- 0 - |
Potential increase |
Potential increase |
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American Red Cross
Disaster Response Fund |
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Revenues |
- 0 - |
Potential gain |
Potential gain |
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Expenditures |
- 0 - |
Potential increase |
Potential increase |
Note: The state
fiscal year is July 1 through June 30.
For example, FY 2007 is July 1, 2006 – June 30, 2007.
·
The
bill creates the American Red Cross Disaster Response Fund in the state
treasury, for the use of the American Red Cross Greater Columbus Chapter. The amount of revenue to the fund and the
expenditures from it will depend on the level of voluntary donations. The money is to be used by the Chapter for
programs of disaster preparedness and response in Ohio.
·
The
Executive Director of the state Emergency Management Agency is required to
issue a report on the effectiveness of the American Red Cross income tax
check-off to the General Assembly in January of every odd-numbered year
beginning January 2011. This may
increase administrative expenditures for the agency.
·
No
direct fiscal effect on political subdivisions.
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H.B. 345 would create the
American Red Cross Disaster Response Fund in the state treasury, for the use of
the American Red Cross Greater Columbus Chapter. The bill would permit taxpayers to designate a portion of any
refund due under the income tax for deposit to the new fund, and would require
the Tax Commissioner to provide a space on personal income tax returns for
taxpayers to indicate such a designation.
Each year the Executive Director of the state Emergency Management
Agency shall make one or more grants to the American Red Cross Greater Columbus
Chapter using money appropriated from the fund, to be used for implementing
disaster preparedness and response programs in the state. The Executive Director of the state
Emergency Management Agency is required to report to the General Assembly, in
January of odd-numbered years beginning January 2011, the effectiveness of the
income tax refund contribution system, including specified items of
information.
Background information
Currently, there are three lines on the income tax
form that allow taxpayers to designate a portion of their refund for a state
fund. The following table gives the
details of collections under the three funds for tax years 2003 through 2005.
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Current Contribution from Income Tax Refund |
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Ohio's Wildlife Species & Conservation of
Endangered Wildlife |
Nature Preserves, Scenic Rivers, & Protection
of Endangered Species |
Military Injury Relief Fund (1) |
Total |
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Tax Year |
Number of
taxpayers |
Amount
contributed ($) |
Number of
taxpayers |
Amount
contributed ($) |
Number of
taxpayers |
Amount
contributed ($) |
Number of
taxpayers |
Amount
contributed ($) |
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2003 |
56,892 |
$435,446 |
66,397 |
$508,218 |
- |
- |
123,289 |
$943,664 |
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2004 |
57,668 |
$425,002 |
59,366 |
$467,438 |
- |
- |
117,034 |
$892,440 |
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2005 |
38,000 |
$387,452 |
44,062 |
$416,569 |
35,721 |
$536,736 |
117,783 |
$1,340,757 |
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(1) Created by H.B. 66 of the 126th General Assembly,
first available for tax year 2005. |
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The Department of Taxation
is entitled, under current law, to reimbursement for its costs of administering
the income tax refund contribution system, receiving its costs in equal shares
from each of the existing funds, up to a maximum of 2.5% of the total amount
contributed through the system. The
bill would alter current law to add the new American Red Cross Disaster
Response Fund to the existing cost reimbursement system.
Fiscal effects
Because the new fund is
financed by voluntary donations, there would be no loss of revenue to the GRF
or to the local government funds. The
amount of revenue to the new fund is uncertain. The new fund would likely receive some revenue, with the amount
of such revenue depending on the number and amount of voluntary
contributions. There is a possibility
that the revenue currently raised under the three existing designations on
Ohio's income tax form may be reduced as some of these moneys may be diverted
to the new fund. Combining such
diverted donations with funds collected through new donations of refunds may
result in hundreds of thousands of dollars of revenue to the American Red Cross
Disaster Response Fund.
Some administrative costs
may be incurred as the Executive Director of the state Emergency Management
Agency is required to ensure that the grants are used for the stated purposes
and for programs administered within the state.
LSC fiscal staff: Isabel Louis, Economist