SB 0830 - Fiscal Note

Fiscal Note - SB 0830 - Reduces assessed valuation percentage for industrial retooling equipment or pollution control

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3586-01

BILL NO. SB 830

SUBJECT: Taxation and Revenue - Property: Economic Development

TYPE: Original

DATE: February 8, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	$0	$0	$0
Total Estimated Net Effect on All State Funds	$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
Political Subdivisions	($0 to Unknown)	($0 to Unknown)	($0 to Unknown)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the State Tax Commission stated losses of revenue to affected local governments would not be significant, that the effect on the Blind Pension Fund would be very small and that proposal would not cause the Commission to request any additional resources.

Officials of the Department of Economic Development and the Department of Natural Resources could not provide estimates of the value of equipment which might be affected by this proposal.

Oversight assumes that those political subdivisions which have tax rates lower than their tax rate ceilings would "roll up" tax rates on other property as much as possible to offset the loss of personal property tax.

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.)
POLITICAL SUBDIVISIONS
Loss - Reduced Property Tax Collections	($0	($0	($0
	to	to	to
	Unknown)	Unknown)	Unknown)
FISCAL IMPACT - Small Business

Any small businesses owning pollution control and retooling equipment or equipment used in the fabrication of computer microelectronics chips would be affected by this proposal.

DESCRIPTION

The proposal would: 1) reduce assessed valuation of pollution control equipment and retooling equipment used for introduction of new product lines or for improving existing products by companies located in state enterprise zones and identified in certain standard industry codes from one-third to twenty-five percent, and 2) provide a schedule for assessing equipment purchased after August 28, 1998, and used in the fabrication of computer microelectronics chips, based on years the equipment has been in service.

This legislation is not federally mandated, would not duplicate any other program, would not

require additional capital improvements or rental space. It would not materially affect Total State Revenue.

SOURCES OF INFORMATION

Department of Economic Development

Department of Natural Resources

State Tax Commission

Jeanne Jarrett, CPA

Director

February 8, 1998