COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0957-01
Bill No.: SB 293
Subject: Taxation and Revenue - Income
Type: Original
Date: March 6, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | Unknown | Unknown | Unknown |
| Total Estimated
Net Effect on General Revenue Fund* |
UNKNOWN | UNKNOWN | UNKNOWN |
*Expected to be less than $100,000 annually.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Department of Revenue (DOR) state this legislation allows the director the discretion to increase the filing threshold for filing income tax returns, therefore decreasing the number of taxpayers who are required to file a return. Currently, the minimum filing threshold is $1,200 for residents and $600 for nonresidents. If this legislation were to pass, DOR anticipates it would increase the filing threshold to the total of the taxpayer's allowable personal exemption, dependency deduction and standard deduction.
This legislation would not have any additional administrative impact or savings to DOR. However, it would be a savings for the taxpayers. DOR notes that the taxpayers affected by the change in the filing threshold do not owe any Missouri tax. The change keeps the taxpayer from having to file a tax return (and probably pay a preparer). However, taxpayers choosing not to file a return may possibly have withholdings that will never be claimed or refunded to the taxpayer. This may result in a savings to General Revenue. However, DOR anticipates any savings will be minimal.
Oversight assumes DOR could have a slight decrease in workload, however the decrease is not expected to be enough to show a cost savings. Oversight assumes the revenue impact of this proposal will be minimal and will therefore show the impact as unknown, expected to be less than $100,000 annually.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE FUND | |||
| Savings - General Revenue | |||
| Unclaimed withholding tax & estimated payments |
Unknown |
Unknown |
Unknown |
| TOTAL ESTIMATED NET EFFECT ON GENERAL REVENUE FUND* |
UNKNOWN |
UNKNOWN |
UNKNOWN |
*Expected to be less than $100,000 annually.
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $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 modifies the requirement for filing an income tax return to allow the Department of Revenue to specify a minimum income greater than the current law's minimum of $200.
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
Mickey Wilson, CPA
Director
March 6, 2003