SB 0667 - Fiscal Note

Fiscal Note - SB 0667 - Increase income tax dependency exemption from $400 to $1200

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2957-01

BILL NO. SB 667

SUBJECT: Children and Minors; Taxation and Revenue-General-Income

TYPE: Original

DATE: February 13, 1998

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	$0	($65,615,757)	($65,746,988)
Total Estimated Net Effect on All State Funds	$0	($65,615,757)	($65,746,988)

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 this proposal raises the income tax dependency deduction from $400 to $1,200. DOR staff state this proposal would not fiscally impact to their agency.

Officials of the Office of Administration (COA) state that this proposal would have an estimated revenue impact of approximately ($0) in FY99, ($65,615,757) in FY2000 and ($65,746,988) in FY2001. COA staff assume that taxpayers will not adjust their withholdings in FY99 to take advantage of the increased dependent deduction. The estimate was based on State of Missouri Individual Income Tax data, data from the Tax Expenditure Report, and population projections from the State Demographer.

This proposal would result in a decrease in Total State Revenues.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
Loss to General Revenue Fund
Increase in Income Tax Dependency Exemption	$0	($65,615,757)	($65,746,988)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0

FISCAL IMPACT - Small Business

No direct fiscal impact on small businesses would be expected as result of this proposal.

DESCRIPTION

This act increases the income tax deduction for dependents, for all tax years beginning on or after January 1, 1999, from the current $400 per dependent to $1,200.

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

Office of Administration

Jeanne Jarrett, CPA

Director

February 13, 1998