COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3778-01
Bill No.: SB 1061
Subject: Economic Development; Taxation and Revenue; Kansas City; Transportation.
Type: Original
Date: February 2, 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 |
| 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 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 |
* Includes potential unknown increase to the transportation sales tax funds for Kansas City and an offsetting decrease in the new transportation sales tax collections available to Kansas City for TIF redevelopment projects.
ASSUMPTION
Officials from the Office of Administration - Budget and Planning, Department of Transportation and the Department of Revenue each assume this proposal would not fiscally impact their respective agencies.
Officials from the Department of Economic Development and the City of Kansas City did not respond to our request for fiscal impact.
Oversight assumes this proposal would result in an offset to the City of Kansas City, a potential increase in the sales tax collections to be used for 'transportation purposes' and a corresponding decrease in potential new taxes available for the TIF redevelopment projects. DOR reports that in FY 2002, it distributed over $121 million to the City of Kansas City for local sales taxes and local option use taxes. Oversight has no way of estimating the amount of transportation sales taxes may be utilized by Kansas City for transportation purposes instead of TIF redevelopment projects as a result of this proposal, and therefore, have reflected the amount as 'unknown'.
| FISCAL IMPACT - State Government | FY 2005 | FY 2006 | FY 2007 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2005 | FY 2006 | FY 2007 |
| CITY OF KANSAS CITY | |||
| Revenue - potential increase in transportation sales taxes (money earmarked for transportation purposes) from exclusion from TIF |
Unknown |
Unknown |
Unknown |
| Loss - to the Special Allocation Fund for new transportation sales taxes being excluded from TIF |
(Unknown) |
(Unknown) |
(Unknown) |
| ESTIMATED NET EFFECT TO THE CITY OF KANSAS CITY |
$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 excludes from TIF (tax increment financing) any transportation sales tax passed in Kansas City. The proposal will prevent TIF from applying to the recently passed Kansas City ATA tax. This change will prevent revenue from the transportation sales tax from being used to fund the TIF revenue stream used to pay TIF bonds.
The proposal has an emergency clause.
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
Office of Administration - Budget and Planning
Department of Transportation
NOT RESPONDING: Department of Economic Development; City of Kansas City
Mickey Wilson, CPA
Director
February 2, 2004