"Analysis Underway on Proposed FY16-17 State Budget and Potential Impact on PLF
- Cuts the income tax by 23% across-the-board (15% income tax cut this year and 8% cut next year);
- Raises the Commercial Activity Tax (CAT) on gross receipts from .26% to .32%;
- Increases the Cigarette Tax from $1.25 to $2.25 per pack;
- Proposes a 6.5% Severance Tax on high volume oil and gas horizontal wells;
- Increases the state sales tax from 5.75% to 6.25%;
- And expands the sales tax base to include the following services: cable TV, parking, lobbying, public relations, consulting, and travel packages.
- Even though public libraries budget on a calendar year basis, the General Assembly and the state operate on a fiscal year basis. Therefore, budget documents are produced for the legislature based on fiscal years and not calendar years.
- This is the very beginning of the budget deliberation process. The final FY16-17 budget will not be enacted until the end of June and numerous changes will be made between now and then.
- Various organizations have already raised concerns with the Governor's tax proposal on severance tax increases, the CAT tax increases, and cigarette tax changes.