COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1679-01
Bill No.: SB 530
Subject: Taxation and Revenue - Sales and Use; Transportation; Tourism; Railroads
Type: Original
Date: March 12, 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 exceed $100,000 annually.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| School District Trust | (Unknown) | (Unknown) | (Unknown) |
| Conservation | (Unknown) | (Unknown) | (Unknown) |
| Parks and Soil | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on Other State Funds* |
(UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
*Expected to exceed $100,000 annually.
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 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* | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
*Expected to exceed $100,000 annually
ASSUMPTION
Officials of the Department of Revenue (DOR) did not respond to our fiscal note request. However, in response to SB 1058 from the 2002 session, DOR stated this legislation exempts ticket sales for railway excursions that travel fewer than fifty miles from their origination. DOR assumed this legislation would not have an administrative impact on its agency.
Officials of the Department of Economic Development, Division of Tourism and the Department of Transportation, Division of Motor Carrier & Railroad Safety assume this bill will not fiscally impact their agencies.
Officials from the Office of Administration - Budget and Planning (BAP) state this bill would provide a sales tax exemption for "railway excursions" of less than 50 miles. It would appear that the purpose of this is to exempt "tourist" type railroad excursions. This proposal would negatively impact general revenue. BAP defers to Department of Revenue and/or Department of Transportation for specific information on the tax revenue loss that would be associated with this proposal. This proposal would have no impact on BAP.
ASSUMPTION (continued)
According to the Amtrak Strategic Business Plan, 22.5 million passengers were served in FY 2000 (ending September 30, 2000) earning ticket revenue of $1.1 billion. For the first quarter in FY 2001, the company served 6 million passengers and received $298 million in ticket revenue. Amtrak's rate of growth in ticket sales is 10%. Amtrak operates 22,000 miles of passenger rail, serving over 500 communities in 45 states. Amtrak operates 842 miles of track in Missouri. Multiplying the ratio of Missouri miles to national miles (3.83%) by national ticket sales, the
estimated annual Missouri ticket sales would be $42.1 million in FY02. However, Amtrak Railroad tickets are not subject to sales tax pursuant to Federal law (49 USC Sec. 24301). The Jefferson City Amtrak Station confirmed that sales tax is not charged on railroad passenger tickets.
In addition to Amtrak, Oversight has identified four scenic tourist trains operating in Missouri based on information from the Missouri Division of Tourism. Whether each train would qualify for the exemption in this proposal is unknown. Also, the sales revenue from these trains is unknown. Therefore, Oversight assumes the revenue loss from this sales tax exemption for railway excursion tickets would be a negative unknown (expected to exceed $100,000 annually) to all affected funds.
This proposal would decrease Total State Revenues.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
|
GENERAL REVENUE FUND |
|||
| Loss - General Revenue Fund | |||
| Sales tax exemption for railway excursion tickets |
(Unknown) |
(Unknown) |
(Unknown) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
(Unknown) |
(Unknown) |
(Unknown) |
| *Expected to exceed $100,000 annually | |||
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| OTHER STATE FUNDS | |||
| Loss - Other State Funds | |||
| Sales tax exemption for railway excursion tickets | |||
| School District Trust Fund | (Unknown) | (Unknown) | (Unknown) |
| Conservation Sales Tax Fund | (Unknown) | (Unknown) | (Unknown) |
| Parks and Soil Sales Tax Fund | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON OTHER STATE FUNDS* |
(Unknown) |
(Unknown) |
(Unknown) |
*Expected to exceed $100,000 annually
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| Loss to Political Subdivisions | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS* |
(Unknown) |
(Unknown) |
(Unknown) |
*Expected to exceed $100,000 annually
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal provides a sales tax exemption for all ticket sales for railway excursions which go less than fifty miles from their origination, do not exceed one hundred miles in total length, and traverse state lines on standard gauge track as part of the federal railroad system of transportation.
The effective date of this proposal is December 31, 2003.
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
Office of Administration
Budget and Planning
Department of Economic Development
Division of Motor Carrier & Railroad Safety
Amtrak Rail Passenger Service & Amtrak Strategic Plan
Missouri Division of Tourism
NOT RESPONDING: Department of Revenue
Mickey Wilson, CPA
Director
March 12, 2003