COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1852-01
Bill No.: SB 554
Subject: Taxation and Revenue - Income; Agriculture and Animals
Type: Original
Date: February 26, 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) |
| 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.
| 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 extends the net operating losses (NOL) carry-back from farming from two years to three years. DOR assumes this legislation will require form changes and programming modifications. However, these modifications will be made with existing resources.
Officials of the Department of Agriculture assume this proposal would not impact their agency. This proposal could have a positive impact on farmers in that they will have more flexibility in carrying back operating losses.
Oversight assumes this proposal would potentially decrease revenue as farmers will be allowed an additional year to report carry-back losses. The amount of the NOL carry-backs is unknown. Oversight will reflect the revenue loss for this proposal as a negative unknown for each year.
This proposal could decrease Total State Revenue.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
|
GENERAL REVENUE FUND |
|||
| Loss - General Revenue | |||
| Extension of farming NOL carry-backs | (Unknown) | (Unknown) | (Unknown) |
|
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDS |
(UNKNOWN) |
(UNKNOWN) |
(UNKNOWN) |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Only farmers with NOL carry-overs would be expected to be impacted as a result of this proposal.
DESCRIPTION
This proposal extends the carry-back of net operating losses from farming from 2 years to 3 years.
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
Department of Agriculture
Mickey Wilson, CPA
Director
February 26, 2003