COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3543-01
Bill No.: SB 1048
Subject: Revenue Dept.; Motor Vehicles; Licenses - Motor Vehicle; Taxation and Revenue - Property; County Officials
Type: Original
Date: February 13, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Highway Fund | ($9,344) | $0 | $0 |
| Total Estimated
Net Effect on Other State Funds |
($9,344) | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Transportation assume this proposal would have no fiscal impact on their agency.
Officials with the Department of Revenue (DOR) indicated that proposal could have fiscal impact on their agency. DOR assumes that its Information Technology Bureau (ITB) would require 400 hours of overtime programming to develop, program, and test a system that will be accessible to all field offices to determine tax-exempt status of organizations and require proof of status and/or payment of personal property tax. DOR estimates such costs for FY05 to total $9,344.
Additional costs as assumed by DOR would be for notifying the field of procedural changes. They estimate these costs for FY05 to total $530. Oversight assumes that such procedural changes could be communicated over the course of regular communications with field offices and the costs could be absorbed by existing or planned appropriations.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| HIGHWAY FUND | |||
| Cost - DOR | |||
| Programming overtime costs | ($9,344) | $0 | $0 |
| ESTIMATED NET EFFECT ON HIGHWAY FUND |
($9,344) |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $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 legislation revises proof of property taxes procedures for motor vehicle registrations for certain tax-exempt organizations. If an assessor determines, after the appropriate hearings and appeals processes, that otherwise taxable personal property owned by an exempt organization is not used for purely charitable purposes, the assessor must notify the Department of Revenue of that final determination within 30 days.
Furthermore, to obtain motor vehicle registration, such exempt organizations must provide a document, in a form approved by the Director of Revenue, verifying that the organization is registered or determined by the IRS to be a tax-exempt entity. Otherwise, or if the Director of Revenues notifies the organization that the property is taxable, the organization must provide a statement that the property was assessed and the personal property taxes for the previous year and all delinquent taxes due have been paid.
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 Transportation
Mickey Wilson, CPA
Director
February 13, 2004