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 0864 - Aviation: Airport assistance and jet fuel tax use
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3625-02
BILL NO. SB 864
SUBJECT: Aircraft and Airports
TYPE: Original
DATE: February 17, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 Aviation Trust Fund
Unknown
Unknown
Unknown General Revenue
(Unknown)
(Unknown)
(Unknown) School District Trust Fund
(Unknown)
(Unknown)
(Unknown) Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| 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 4 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Transportation (DOT) assume the legislation would create a significant amount of new revenue in the Aviation Trust Fund. Although they indicate the Department of Revenue has not provided specific figures, officials assume the increase in revenues to the fund could range from $8 to $12 million. These revenues currently are credited to the state's General Revenue Fund. DOT assumes that if such a significant increase in revenues occurs, they would require an additional FTE (Construction Inspector) in their aviation section to administer the additional funds. Personal service costs would approximate $42,000 annually and be funded by the State Road Fund.
Officials of the Department of Revenue did not respond prior to issuance of this fiscal note.
Department of Natural Resources (DNR) officials indicated that DOT has stated that the Aviation Trust Fund generates approximately $400,000 to $500,000 annually. In addition, the proposal states that beginning September 1, 1998 the revenue from sales and use tax on aviation jet fuel is to be deposited in the Aviation Trust Fund, although DNR officials do not have information concerning the additional amounts to be credited to the Fund. They also note that DOT receives general revenue funding for related activities, for which the current amount should be approximately $642,000. As owner of Lee C. Fine Airport, DNR assumes that they would be included in the pool of potential applicants for available funds.
Oversight assumes that the proposal would result in revenues from taxes on aviation jet fuel being credited to the Aviation Trust Fund rather than the General Revenue Fund and the School District Trust Fund. The proposal exempts amounts from being credited to the Aviation Trust Fund that are specifically designated under the Missouri Constitution for other purposes; therefore, Oversight assumes there would be no impact on tax revenues credited to the Conservation Sales Tax and Parks and Soils Sales Tax Funds. The amount of revenues that would be credited to the Aviation Trust Fund as a result of this proposal is unknown.
Oversight also assumes that since the proposal only increases funds available for grants to airports, essentially replacing federal funds that have decreased over the past several years as indicated by DOT in response to a similar proposal, and does not impose new duties on the DOT, any need for additional FTE as a result of granting more funds to airports would be requested in the DOT's future budget requests as appropriation requests from the Aviation Trust Fund may increase.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| AVIATION TRUST FUND | |||
| Income-sales and use tax collections on | |||
| aviation jet fuel | Unknown | Unknown | Unknown |
| GENERAL REVENUE FUND | |||
| Loss-sales and use tax collections on | |||
| aviation jet fuel | (Unknown) | (Unknown) | (Unknown) |
| SCHOOL DISTRICT TRUST FUND | |||
| Loss-sales and use tax collections on | |||
| aviation jet fuel | (Unknown) | (Unknown) | (Unknown) |
| 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
The proposal would provide that all sales taxes on aviation jet fuel (except those otherwise designated in the Constitution) shall be placed in the aviation trust fund beginning September 1, 1998. The aviation trust fund may be used to assist FAA reliever airports and airports operated by certain state agencies and educational institutions. Operational assistance for existing control towers is allowed. The appropriation limit of $5 million is removed. The aviation trust fund may also be used for emergency aid following natural or manmade disasters.
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 Transportation
Department of Natural Resources
NOT RESPONDING: Department of Revenue
Jeanne Jarrett, CPA
Director
February 17, 1998