SJR 036 - Fiscal Note

Fiscal Note - SJR 036 - Reauthorizes & Redistributes soils & Parks Sales Tax

L.R. NO.  2945-06
BILL NO.  SJR 36
SUBJECT:  Constitutional Amendments: Sales and Use Tax
TYPE:     Original
DATE:     February 19, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
General Revenue          ($72,300)                  $0                $0

State Park Sales
Tax Fund                        $0                  $0       $21,100,000

Soil and Water
Sales Tax Fund                  $0                  $0       $16,000,000

Total Estimated
Net Effect on All
State Funds              ($72,300)                  $0       $37,100,000


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

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
Missouri Water
Resources                       $0                  $0        $3,200,000

Local Park Sales
Tax                             $0                  $0        $1,900,000

Local Government                $0                  $0        $5,100,000


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Natural Resources said that the proposal would
not affect their agencies, administratively.

Officials of the Department of Revenue (DOR)  assume that a Tax Audit Analyst
would be needed about 1/6th time to make distributions, once a year, to local
governments beginning in FY 1999. Oversight assumes that this cost could be
absorbed. If the distribution would be made monthly, costs to DOR would be
greater.

Oversight notes that in the absence of this or a similar proposal, the tax
would expire November 8, 1998. It is projected that the tax will bring in
about $63,400,000 per year by the time it is scheduled to expire.

Fiscal impacts reflect the fact that in the absence of a constitutional
amendment, the tax will expire November 8, 1998 and the affected funds would
get nothing.

Advertisement costs for the proposal would be $1,220 per column inch for the
text of the proposal, the introduction, title, fiscal note summary, and
affidavit.  The proposal would be on the ballot for the November 1996 general
election.


FISCAL IMPACT - State Government    FY 1997     FY 1998      FY 1999

GENERAL REVENUE FUND

Cost to General Revenue Fund
  Secretary of State
  Newspaper Advertisements        ($72,300)          $0           $0

ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND              ($72,300)          $0           $0


STATE PARK SALES TAX FUND

Income to State Park Sales Tax Fund      $0          $0  $21,100,000

ESTIMATED NET EFFECT ON
STATE PARK SALES TAX FUND                $0          $0  $21,100,000

SOIL AND WATER SALES TAX FUND

Loss to Soil and Water Sales Tax Fund    $0          $0 ($1,700,000)

Income to Soil and Water Sales Tax Fund  $0          $0  $17,700,000

ESTIMATED NET EFFECT ON SOIL
AND WATER SALES TAX FUND                 $0          $0  $16,000,000

FISCAL IMPACT - Local Government    FY 1997     FY 1998      FY 1999

Missouri Water Resources Fund            $0          $0   $3,200,000
Local Park Sales Tax Fund                 0           0    1,900,000

ESTIMATED NET EFFECT ON
LOCAL GOVERNMENTS                        $0        $0    $$5,100,000
 DESCRIPTION

This proposal would extend the one-tenth percent state sales tax until
November 8, 2011, and remove the current expiration date for the tax. This
proposal would, effective July 1, 1998,  distribute part of the tax proceeds
to Missouri Water Resources Fund and to the Local Parks Sales Tax Fund. The
Funds would be created by the proposal and by Fiscal Year 2002, the sales tax
distribution would be as follows: State Park Sales Tax Fund-50% (same as
currently), Soil and Water Sales Tax Fund-20% (currently 50%), Missouri Water
Resources Fund-20% (new fund), and Local Parks Sales Tax Fund-10% (new fund).

Money in the two new funds would be distributed, as specified in the
proposal, to cities and counties to be used solely for purposes specified in
the proposal. Local governments would have to match 20% of monies from the
new funds on either a cash or in-kind basis.

The proposal would also specifically make acquisition, development,
maintenance and operation of state historic sites eligible for use of tax
funds.

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 Natural Resources
Department of Revenue
Secretary of State