Fiscal Note HB 1131

FISCAL NOTE 2007-HB1131A

HB 1131 increase the amount of funding for conservation and value-added agriculture purposes from certain unclaimed motor fuel tax refunds and to make an appropriation therefor.

HB 1131 increases the amount of funding for conservation and value added agriculture purposes from certain unclaimed motor fuel tax refunds and appropriates money for the South Dakota Value Added Development Center and Northern Crops Institute

After consultation with the Bureau of Finance and Management, it is estimated that HB 1131 would have the following impact on state finances:

Current

FY 2005

Refunds $1,500,563

Coordinated Soil and Water Conservation Fund $505,145

Value Added Agriculture (.03) $253,306

$2,259,014

HB 1131

CY 2006

Millions of dollars og gas usage by plains states* $615,000,000

South Dakota usage in 12% $73,800,000

Average price of gas in 2005*** $2.27

Gallons used in SD in 2005 32,511,013

50% of gallons 16,255,507

Tax on gas .22**** $3,576,211

Refunds in 2005 $1,500,563

Unrefunded in 2005 $2,075,648

13.65% for Value Addred (NCI & Value Added)***** $283,326

To Coordinated Soil and Water Conservation Fund $1,792,322

* http://usda.mannlib.cornell.edu/usda/nass/FarmProdEx//2000s/2006/FarmProdEx-08-03-2006.pdf Page 66
** based on 1987, 1992, and 1997 data of gas usage by state provided by National Agriculture Statistics Service
*** http://www.eia.doe.gov/steo
**** SDCL 10-47B-4
***** Funding for the $75,000 appropriations to the SD Value Added Development Center and Northern Crops Institute

Difference

Current

HB 1131

Difference

Coordinated Soil and Wat4er Conservation Fund $505,145 $1,792,322 $1,287,177

Value Added Agriculture $253,306 $536,632 $283,326

Total $758,451 $2,328,954 $1,570,503

With the passage of HB 1131, there will be a decrease of $1,570,503 that would otherwise be transferred to the State Highway Fund which is administered by the Department of Transportation.

APPROVED BY:_______________________________________ DATE:____________

Current
	FY 2005
Refunds	$1,500,563
Coordinated Soil and Water Conservation Fund	$505,145
Value Added Agriculture (.03)	$253,306
	$2,259,014

HB 1131
	CY 2006
Millions of dollars og gas usage by plains states*	$615,000,000
South Dakota usage in 12%	$73,800,000
Average price of gas in 2005***	$2.27
Gallons used in SD in 2005	32,511,013
50% of gallons	16,255,507
Tax on gas .22****	$3,576,211
Refunds in 2005	$1,500,563
Unrefunded in 2005	$2,075,648
13.65% for Value Addred (NCI & Value Added)*****	$283,326

To Coordinated Soil and Water Conservation Fund	$1,792,322

Difference
	Current	HB 1131	Difference
Coordinated Soil and Wat4er Conservation Fund	$505,145	$1,792,322	$1,287,177
Value Added Agriculture	$253,306	$536,632	$283,326
Total	$758,451	$2,328,954	$1,570,503