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 0558 - Establishes liability for tax-exempt entity which uses improper project exemption certificates
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2545-01
BILL NO. Truly Agreed to and Finally Passed SB 558
SUBJECT: 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
Total Estimated
$0
$0
$0
|
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 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) state that this proposal changes the project exemption certificate procedure to be sure that the exempt entity is responsible for any tax liability if they have issued a project exemption certificate outside their statutory authority. This is a protection measure for those contractors relying on such certificates.
Oversight assumes this proposal would not affect Total State Revenues.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
Under this act, if a tax-exempt entity issues project exemption certificates for the purchase of tangible personal property and materials which are incorporated into or consumed in the construction of its project and the entity is subsequently found not to have authority to issue such certificates, or if the property and materials purchased are not related to the entity's exempt functions and activities, the issuing entity shall be liable for the tax owed on such personal property and materials.
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
May 8, 1998