Even if lawmakers pass them by April 1, the tax increases Gov. Kenny Guinn's budget needs to balance this year's budget will fall short because of the time it takes to put them in place.
Guinn called for increases in "sin taxes," Secretary of State's Office fees and the business license tax as soon as possible to raise $83.9 million before the end of this fiscal year.
The primary problem is in the Secretary of State's Office, where it will take at least 90 days to implement some of the increases.
Secretary of State Dean Heller told lawmakers that corporate renewal bills due in April already have been sent out, so the soonest any increases could be started is May.
Heller's Chief Deputy Renee Parker pointed out that annual securities fees have been paid for this year -- they're due in January -- so the office can't raise them until next year. And she said some of the fees are contained in regulations, so they must be noticed and public hearings held before any increases are imposed.
"If they pass the bill, they have to give us at least 90 days to implement," said Heller.
Asked why that wasn't taken into account, Heller told the Ways and Means Committee on Friday his office wasn't part of the discussions in the governor's office when the tax plan was developed.
Director of Administration Perry Comeaux said his office is aware of the problem.
"We've decided we probably wouldn't see the $6.8 million from the Secretary of State's Office, but we did build in a little wiggle room so it shouldn't affect us much," said Comeaux.
He said part of that "wiggle room" is in the $100 million the governor wants to take out of the "rainy day fund" to balance the budget. The budget puts $50 million of that money back once more revenues come in next year. Comeaux said a shortfall in fee revenue would simply reduce that deposit back into the "rainy day fund."
Taxation Director Chuck Chinnock said there should be no problem with the revenues projected from raising cigarette and liquor taxes and that, if they are passed by mid-March, they could be imposed in April.
But Comeaux said if lawmakers delay a decision, it could prevent the increases from taking effect in April. That could cost the state a month's worth of added revenue from each of those taxes -- about $12 million.
The business tax, Chinnock said, is paid quarterly so it can be applied to the entire final quarter of this fiscal year if it is passed in time to notify businessmen before they pay in June.
