COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



LR No.: 1757-01

Bill No.: SB 527

Subject: Merchant Licenses: Counties

Type: Original

Date: March 3, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
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 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government * Unknown Unknown Unknown

*Income from new fee structure is expected to exceed $100,000 annually. The actual amount would be determined by the amount of fee imposed by the governing body.



FISCAL ANALYSIS



ASSUMPTION



Officials of St. Louis County stated that based on 14,126 license fee accounts an additional $284,475 dollars would be generated.



Oversight assumes this proposal would have no fiscal impact to state departments. Oversight assumes that the amount of revenue generated in those counties affected would be dependent upon the amount of fee that would be set by the governing body. The amount of additional revenue to be generated on a statewide basis is unknown.



Officials not responding is as follows: City of St. Louis, St. Charles County, Jackson County, and the County Employee's Retirement System



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0







FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
COUNTY or CITY GENERAL REVENUE FUND
Income to Certain County or City General Revenue Fund
from merchant license fee increase * Unknown Unknown Unknown

* The amount of additional income from merchant license fee increase in certain counties or cities is indeterminable. Oversight assumes the increase would exceed $100,000 annually.



FISCAL IMPACT - Small Business



Small businesses located in certain counties would be expected to pay an additional fee for merchant licenses.



DESCRIPTION



This act modifies the cost of a merchant's license. The section governing this law was double enacted in 1994. That means that different language was passed in two bills that enacted the same section. This act repeals one of the versions of this section entirely and modifies the other.

The resulting fee structure from this act will enable the governing body of all charter counties and the city of St. Louis to assess a fee of up to $25, adjusted annually for inflation, not to exceed $100. Current law sets the fee in these counties and St. Louis at $5, except for Jackson county, where current law lets the governing body set the fee, not to exceed $100.

In all other counties, this act sets a fee of $25. Currently, the double enacted sections conflict on this amount, setting it at $5 in one and $25 in the other.



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



St. Louis County Collector







NOT RESPONDING



City of St. Louis

Jackson County

St. Charles County

















































Mickey Wilson, CPA

Director

March 3, 2003