COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4558-01
Bill No.: Perfected SB 1311
Subject: Taxation and Revenue - Income
Type: Original
Date: March 31, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | $0 | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | (UNKNOWN) | (UNKNOWN) |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| $0 | $0 | $0 | |
| Total Estimated
Net Effect on All 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 |
ASSUMPTION
Department of Revenue (DOR) officials state this legislation gives a taxpayer a tax credit for
taxes paid in another state before the application of tax credits in that other state. This will give taxpayers with out-of-state credits a higher resident tax credit. However, DOR assumes the resident credit still cannot exceed the taxpayer's Missouri tax liability.
DOR assumes this legislation will change the form instructions for next year, which will be incorporated into the year-end changes. Personal Tax does not anticipate making any modifications to the MINITS system.
Customer Assistance does not anticipate a large impact in their offices. However, if they are wrong in this assumption they will need one Tax Collection Technician for every 15,000 calls per year on the technical assistance line, and one Tax Collection Technician for every 5,200 calls for the local field office calls.
Officials from the Office of Administration, Budget and Planning (BAP) assume this proposal has no impact on BAP. BAP assumes this proposal would increase the credit allowed for taxes paid to another state by no longer requiring the subtraction of tax credits taken in such state. This proposal would have an unknown negative impact on general revenue and Total State Revenues.
This proposal would result in a decrease in Total State Revenues.
| FISCAL IMPACT - State Government | FY 2005
(6 Mo.) |
FY 2006 | FY 2007 |
|
GENERAL REVENUE FUND |
|||
| Loss - General Revenue | |||
| Increase in tax credit for taxes paid to another state |
$0 |
(Unknown) |
(Unknown) |
| TOTAL ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
$0 |
(UNKNOWN) |
(UNKNOWN) |
| FISCAL IMPACT - Local Government | FY 2005
(6 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 proposal increases the credit allowed for taxes paid to another state by basing the amount of the credit on the tax liability in the foreign state prior to subtraction of any tax credits taken in such state. Current law allows the credit, but requires the subtraction of credits that were based on charitable contributions which also qualify for charitable deductions at the federal level. Consistent with the current law, the act requires a reciprocal credit in the foreign state for taxes paid in Missouri in order for the Missouri credit to be used.
The proposal has an effective date of January 1, 2005.
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
Mickey Wilson, CPA
Director
March 31, 2004