This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0004 - Extends Kansas City transportation sales tax until December 31, 2001
SB 4 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0439-01

BILL NO.: Perfected SB 4

SUBJECT: Kansas City; Revenue Dept.; Taxation and Revenue-General-Sales and Use

TYPE: Original

DATE: February 24, 1999


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
General Revenue $145,500 $299,000 $154,000
Total Estimated

Net Effect on All

State Funds

$145,500 $299,000 $154,000



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 $14,404,500 $29,601,000 $15,246,000

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 would not fiscally impact their agency.

Officials of the Kansas City Area Transportation Authority state the extension of the Kansas City Transportation Sales Tax would generate approximately $29.1 million in revenues for FY2000, $29.9 million for FY2001 and $30.8 million for FY2002. The revenues collected from this tax are used to provide public mass transit and para-transit (for the elderly and handicapped) for the city of Kansas City, Mo. This fund is subsequently the 20 percent match for all federal grant funding.

This proposal would result in an increase in Total State Revenues since Collection Fees are included in the General Revenue Fund and general revenues are included in the calculation of Total State Revenue.

FISCAL IMPACT - State Government FY 2000 FY 2001 FY 2002
(6 Mo.) (6 Mo.)
Income to General Revenue Fund
1% Collection Fee $145,500 $299,000 $154,000

ESTIMATED NET EFFECT TO

GENERAL REVENUE FUND $145,500 $299,000 $154,000
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(6 Mo.) (6 Mo.)
Income to Kansas City Area
Transportation Authority % Sales Tax $14,404,500 $29,601,000 $15,246,000

ESTIMATED NET EFFECT TO

LOCAL GOVERNMENT $14,404,500 $29,601,000 $15,246,000
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that they pay local sales tax on taxable items. The extension of the Kansas City transportation sales tax would cause small businesses to continue to pay the local rate for such taxable items.



DESCRIPTION

Under current law, the Kansas City sales tax for mass transportation will expire on

December 31, 1999. This act extends the expiration date until December 31, 2001.

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

Kansas City Area Transportation Authority

Jeanne Jarrett, CPA

Director

February 24, 1999