This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0117 - Specifies that article used in trade-in to offset sales tax must have had tax paid or been exempted from tax
SB 117 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0017-02

BILL NO.: SB 117

SUBJECT: Motor Vehicles; Taxation and Revenue-General-Sales and Use

TYPE: Original

DATE: January 6, 1999


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
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 specifies that an article used or traded in conjunction with a sales tax transaction must have had the tax paid or be exempt from tax. DOR staff state this proposal supports the department's current position regarding trade-in tax credits and provides a legal basis for legal proceedings before the Administrative Hearing Commission and would not fiscally impact their agency.

Oversight, for purposes of this fiscal note, assumes the fiscal impact of this proposal would be zero.

FISCAL IMPACT - State Government FY 2000 FY 2001 FY 2002
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(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 current law, if property is traded in on a purchase, purchasers pay sales or use tax only on the excess, if any, of the purchase price of the new item less any trade-in allowance and any applicable rebates. This act authorizes the reduction in the purchase price of an article if the trade-in has been subject to the imposition of sales or use tax or has been exempted or excluded from such tax.

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

January 6, 1999