PPT Slide
The chart on tax exemptions explains how much has been lost from the revenue base as a result of selected tax credits, exemptions, and dedications. These are the CAPCO credit for venture capital pool creation; the 1¢ sales tax exemption on food, utilities, etc.; the inventory tax credit, and the dedication to local governments of the sales tax on hotel and motel room charges. In 1996 these credits, exemptions, and dedications amounted to $71 million. The chart extends the $71 million across the years to provide a base for comparing the situation in FY 00. As can be seen on the chart, the exemptions increase from the base of $71 million to $268 million. The difference of $197 million represents how much more of the tax base is being consumed by these four items in FY 00 than in FY 96. There are a number of other exemptions and tax abatements granted during the four year period that are not included in the chart. The phase out of the inheritance tax is one of the more expensive items not included in the calculations.