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 0984 - Allows an income tax deduction for contributions to medical savings accounts
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 4033-01
BILL NO. SB 984
SUBJECT: Insurance - Medical; Taxation and Revenue - Income; Revenue Department; Health Care
TYPE: Original
DATE: March 9, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
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 from the Department of Insurance and the Office of Administration assume this proposal would not fiscally impact their agencies.
Department of Revenue (DOR) officials state they do not anticipate an administrative impact. DOR states that currently medical savings accounts are deducted on the federal return and flow through on the Missouri return. DOR states that according to this proposal, if a taxpayer takes a deduction on the federal return, they do not qualify for the deduction on the Missouri return. The Division of Taxation does not envision a circumstance where a taxpayer would not take the deduction on the federal return and qualify for the deduction on the Missouri return.
| 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
An income tax deduction would be allowed for those making contributions to medical savings accounts. The proposal would use the provisions of the federal law allowing the same deduction, but it would not limit the number of participants and would have separate limits for the deductions.
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
Office of Administration
Division of Budget and Planning
Department of Revenue
Department of Insurance
Jeanne Jarrett, CPA
Director
March 9, 1998