SB 0023 - Fiscal Note

Fiscal Note - SB 0023 - Allows lumber and building materials dealers to remit sales tax upon receipt of cash payments

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0565-01

BILL NO.: SB 23

SUBJECT: Contracts and Contractors; Revenue Dept.; Taxation and Revenue

TYPE: Original

DATE: January 14, 1999

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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 allows lumber dealers and sellers of building material to file and remit sales tax when payment is received, i.e. a cash basis. Missouri Statutes presently allow this but case law allows the "gross receipts" method of accounting. Both methods are standard accounting procedures and presently used. DOR staff state this proposal would not fiscally impact their agency.

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

This act allows lumber and building materials dealers to remit sales tax upon receipt of cash payments. The Director of Revenue is authorized to assess any additional tax due within three years from the date the tax is required to be paid; the tax may be assessed at any time if no return is filed or if a willfully false or fraudulent return has been filed with intent to evade the tax. Dealers are required to maintain certain records for a period of three years from the date the tax on each sale is paid to the Director of Revenue. This act applies to all sales made or uses occurring on or after September 1, 1999, including those made or occurring under a prior contract.

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 14, 1999