TO:	Honorable Dennis Bonnen, Chair, House Committee on Ways & Means
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB28 by Bonnen, Dennis (relating to the use of certain surplus state revenue, in certain circumstances, to adjust franchise tax rates to phase out the franchise tax and to the expiration of that tax.), Committee Report 1st House, Substituted

No impact on the overall distribution of a state tax or fee burden among individuals and businesses is anticipated from the provisions of this bill in fiscal year 2019.  The bill is expected to change the distribution of franchise tax burden among individuals and businesses beginning in fiscal year 2020, however, the effects on the distribution of franchise tax revenue for that year cannot be determined at this time.  For purposes of information, House Bill 28 as Introduced took effect in fiscal year 2018, and therefore the Tax/Fee Equity Note for that version of the bill includes an analysis of the effect of this legislation in fiscal year 2019.