SB 0469 - Fiscal Note

Fiscal Note - SB 0469 - Treats other states tax credits for charitable contributions as taxes paid in those states

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 2038-01

BILL NO.: SB 469

SUBJECT: Charities; Revenue Department; Taxation and Revenue - General; Taxation and Revenue - Income

TYPE: Original

DATE: March 9, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	(Unknown)	(Unknown)	(Unknown)
Total Estimated Net Effect on All State Funds	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
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 from the Department of Revenue assume this proposal would not fiscally impact their agency.

Office of Administration officials state that no information is available to determine the fiscal impact of this proposal.

Oversight assumes there would be an unknown fiscal impact on the General Revenue Fund. The State of Kansas was contacted to determine if they allowed tax credits for charitable contributions on their state income tax return. Kansas does allow such tax credits for charitable contributions but was unable to determine any historical data on Missourians who claim the credit.

This proposal would result in a decrease in Total State Revenues.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Loss - General Revenue Fund
Deduction of charitable tax credits	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND	(UNKNOWN)	(UNKNOWN)	(UNKNOWN)
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 proposal would allow income tax credits of other states which are based on the federal charitable contribution deduction to be treated as income taxes paid in those states for purposes

of determining a Missouri taxpayer's income tax liability. The proposal would have an effective date of January 1, 2000, and applies to all taxable years beginning after December 31, 1999.

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

Office of Administration

Division of Budget and Planning

Jeanne Jarrett, CPA

Director

March 9, 1999