This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0513 - Exempts from sales and use tax sales certain assistive devices used by people with a disability
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2393-01
BILL NO. SB 513
SUBJECT: Disabilities: Taxation and Revenue-General; Taxation and Revenue-Sales and Use
TYPE: Original
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
(unknown)
(unknown)
(unknown) Highway
(unknown)
(unknown)
(unknown) School District Trust
(unknown)
(unknown)
(unknown) Conservation
(unknown)
(unknown)
(unknown) Park and Soil
(unknown)
(unknown)
(unknown) Total Estimated
($500,000) to
($1,000,000)
($500,000) to
($1,000,000)
($500,000) to
($1,000,000)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | (unknown) | (unknown) | (unknown) |
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) state this proposal exempts from sales and use tax medical assistive devices when purchased by a person with one or more physical or mental disabilities including wheelchairs, scooters, stairway lifts, braille writers, electronic braille equipment reading machines, electronic print enlargers and magnifiers, electronic alternative and augmentative communication devices, and items used solely to modify motor vehicles to permit the use of the vehicles by individuals with disabilities. DOR staff state that the administrative impact from this proposal would be minimal.
While data is not available to accurately estimate total affected sales Oversight assumes, based on information gathered from industry, that the revenue loss as a result of this proposal would range between $500,000 and $1,000,000 annually.
This proposal would result in a decrease in Total State Revenues since Sales and Use Tax collections are included in the calculation of Total State Revenue.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| Loss - General Revenue Fund | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
|
ESTIMATED NET EFFECT ON | |||
| GENERAL REVENUE FUND | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| Loss to Highway Fund | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
|
ESTIMATED NET EFFECT ON | |||
| HIGHWAY FUND | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (Continued) | (10 Mo.) | ||
| Loss - School District Trust Fund | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
|
ESTIMATED NET EFFECT ON | |||
| SCHOOL DISTRICT TRUST FUND | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| Loss - Conservation Fund | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
|
ESTIMATED NET EFFECT ON | |||
| CONSERVATION FUND | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| Loss - Parks and Soil Fund | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
|
ESTIMATED NET EFFECT ON | |||
| PARKS AND SOIL FUND | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| Loss to Cities | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
| Loss to Counties | |||
| Elimination of sales tax on | |||
| Medical assistive devices | (unknown) | (unknown) | (unknown) |
|
ESTIMATED NET EFFECT ON | |||
| LOCAL GOVERNMENT | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
FISCAL IMPACT - Small Business
Small businesses who sell medical assistive devices would be expected to be fiscally impacted to the extent that they would no longer collect and pay sales tax on taxable items. Small businesses who would purchase these medical devices and equipment would pay less for such items.
DESCRIPTION
This bill exempts from sales and use tax sales of certain assistive devices, such as wheelchairs, stairway lifts and braille writers, necessary to persons with one or more physical or mental disabilities to enable them to function more independently.
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 Revenue
Jeanne Jarrett, CPA
Director
January 12, 1998