This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0426 - Extends sunset on tire disposal fee
SB 426 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1855-02

BILL NO.: Truly Agreed To and Finally Passed HCS for SB 426

SUBJECT: Scrap Tire Fees

TYPE: Original

DATE: April 28, 1999


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
General Revenue $0 $40,519 $84,812
Solid Waste Management Fund $0 $974,855 $2,035,497
Total Estimated

Net Effect on All

State Funds

$0 $1,015,374 $2,120,309



ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
None $0 $0 $0
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

The Department of Natural Resources (DNR) assumes this proposal would extend the sunset date on the waste tire fee. The waste tire fee generates about $1.75 million dollars annually. The DNR assumes the revenue will be used to fund continued removal of illegally dumped tires, educational programs, and grants to end users.

The Department of Elementary and Secondary Education assumes they would not be fiscally impacted by this proposal.

In a response to a previous version, the Department of Revenue (DOR) assumed this fee is collected by the DOR for the DNR and is deposited 96% in the Solid Waste Management fund and 4% is the General Revenue Fund. The 1998 collections were $1,784,831. The was a 4.4 % increase over 1997. Assuming a continued increase of 4.4%, the DOR assumes income to be $1,945,351 in FY 2000, $2,030,947 in FY 2001, and $2,120,309 in FY 2002.

This proposal extend the sunset on this fee from January 1, 2001, to January 1, 2004, therefore, Oversight assumes the fiscal impact of this proposal would be increased income for the last six months of FY 2001 and for FY 2002.



FISCAL IMPACT - State Government FY 2000 FY 2001 FY 2002
(6 Mo.)
GENERAL REVENUE FUND
Income - DNR
Waste tire fee $0 $40,519 $84,812
SOLID WASTE - SCRAP TIRE FUND
Income - DNR
Waste tire fee $0 $974,855 $2,035,497
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(6 Mo.)
0 0 0
FISCAL IMPACT - Small Business
Small businesses who are tire retailers would be required to continue collecting the $.50 per tire fee on retail sales and remit the fee to the Department of Revenue. Also, small businesses purchasing tires would continue to pay the scrap time fee.


DESCRIPTION

The waste tire fee will expire on January 1, 2001. This bill extends the fee to January 1, 2004.

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 Natural Resources

Department of Elementary and Secondary Education

Department of Revenue





Jeanne Jarrett, CPA

Director

April 28, 1999