Brief (1)
House Sub. for SB 332, as amended by the House Committee of the Whole, would prevent cities and public water supply systems from prohibiting the installation of a separate water meter for each dwelling unit within a building containing multiple dwelling units in lieu of installation of a master meter for the entire building.
The bill also would provide a sales tax exemption - under certain circumstances - effective January 1, 2002, for the purchases of various public water districts, including indirect purchases made on behalf of such districts by contractors. Additional language would clarify that the sales tax does not apply to the gross receipts from sales of rural water district benefit units; water system impact or system enhancement or other similar fees; and connection or reconnection fees collected by water suppliers.
A new clean water drinking fee of $0.028 per 1,000 gallons of water sold at retail by a public water supply system would be imposed from January 1, 2002 through June 30, 2004, except that public water supply systems would be authorized to "opt out" of imposing the fee. Any such election would be irrevocable and would further eliminate the aforementioned sales tax exemption for the district through June 30, 2004.
Background
The original SB 332 would have authorized the establishment of tax-advantaged individual development accounts for the purpose of purchasing assistive technology. The House Taxation Committee struck the original provisions and instead recommended the substitute bill, which contains issues similar to those addressed in Sub. for HB 2006. The House Committee of the Whole added the fee provisions.
Based on the latest fiscal information prepared by the Department of Revenue, the bill would be expected to reduce receipts as follows. The following figures were revised by the Department of Revenue as of April 30, 2001.
| ($ in millions) | ||||||
| Sales Tax | Sales Tax | Sales Tax | New Fee | Net Fiscal | Net Fiscal | |
| Exemption | Exemption | Exemption | Only to | Impact on | Impact | |
| Total
|
SGF
|
SHF
|
SGF
|
SGF
|
SGF+SHF
|
|
| FY 2002 | ($1.455) | ($1.380) | ($0.074) | $1.361 | ($0.019) | ($0.094) |
| FY 2003 | ($3.628) | ($3.443) | ($0.185) | $3.397 | ($0.046) | ($0.231) |
| FY 2004 | ($3.770) | ($3.578) | ($0.192) | $3.533 | ($0.045) | ($0.237) |
| FY 2005 | ($3.918) | ($3.718) | ($0.200) | $0.306 | ($3.412) | ($3.612) |
| FY 2006 | ($4.071) | ($3.864) | ($0.208) | --- | ($3.864) | ($4.071) |
| 5-Year Total | ($16.841) | ($15.982) | ($0.859) | $8.597 | ($7.385) | ($8.244) |
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi