This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0524 - Supervision of Professional Boxing/Wrestling/Karate etc.
L.R. NO. 2218-03
BILL NO. SCS for SB 524 with HCA 1
SUBJECT: Licenses, Professional: Amusement
TYPE: Original
DATE: May 9, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Athletic $43,212 $51,854 $51,854
Total Estimated
Net Effect on All
State Funds $43,212 $51,854 $51,854
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development-Professional
Registration assume the proposed legislation would result in an annual
revenue loss of $1,794 from the deregulation of amateur events. However, the
loss would be offset by an increase from 1% to 5% in annual gross receipts
revenue for pay-per-view events. Based on annual gross receipts of
$1,185,600 for pay-per-view events and the 4% increase, the estimated amount
of additional annual revenue would be $47,424 ($1,185,600 x 4% = $47,424).
The proposal would also provide for DPR to assess a tax of 25% of the gross
receipts from certain persons/groups for any ultimate fighting contest.
Based on the proposed tax of 25% instead of 1% and an estimate of $25,935 in
annual gross receipts, DPR estimates additional annual revenue to be $6,224
($25,935 x 24% = $6,224).
Officials from the Department of Revenue, Administrative Hearing Commission
and the Office of State Courts Administrator assume the proposed legislation
would have no fiscal impact on their agencies.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
ATHLETIC FUND
Income Division of Professional Registration (DPR)
Gross Receipts Tax Increase (Pay-Per-View) $39,520 $47,424 $47,424
Gross Receipts Tax Increase (Ultimate Fighting) 5,187 6,224 6,224
Total Income - DPR $44,707 $53,648 $53,648
Loss - Division of Professional Registration (DPR)
Revenue from Deregulation of Amateur Events ($1,495) ($1,794) ($1,794)
Total Loss - DPR ($1,495) ($1,794) ($1,794)
ESTIMATED NET EFFECT TO
ATHLETIC FUND $43,212 $51,854 $51,854
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
DESCRIPTION
The proposed legislation would define "professional boxing", "professional
kickboxing" and "professional wrestling" and would eliminate regulation of
amateur sporting events.
Additionally, it would increase the gross receipts revenue on pay-per-view
professional boxing, professional kick boxing, professional wrestling, etc.
from one percent to five percent. The cashiering of funds would be changed
from the Department of Revenue to the Department of Economic Development.
The proposal would also provide for an assessment of twenty-five percent of
the gross receipts for ultimate fighting contests to be placed in the
Athletic Fund.
The proposal would prohibit combative fighting in Missouri. Anyone who
participates in combative fighting or serves as an agent, vendor, producer,
referee or contractor of or for combative fighting would be guilty of a class
D felony.
The proposal contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Economic Development-Professional Registration
Department of Revenue
Administrative Hearing Commission
Office of State Courts Administrator