COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4561-01
Bill No.: SB 1276
Subject: Taxation and Revenue - Property; Property, Real and personal, Aircraft and Airports
Type: Original
Date: March 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 |
| Blind Pension | $0 | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on Other State Funds |
$0 | (Unknown) | (Unknown) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 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 | (Unknown) | (Unknown) |
ASSUMPTION
Officials from the Department of Revenue and the Office of Administration, Division of Budget and Planning assume this proposal would have no impact on their organizations.
Officials from the State Tax Commission (TAX) assume this proposal would have no direct impact on their organization. TAX officials assume this proposal would have an unknown negative revenue impact on local governments, as the assessed valuation of noncommercial aircraft hangars would be reduced from 32% of appraised value to 19% of appraised value. TAX has no information regarding the number or value of noncommercial hangars.
Officials from the Office of the Cole County Assessor and the Department of Public Safety did not respond to our request for information.
ASSUMPTIONS (continued)
Officials from the Department of Transportation (MODOT) stated there are 130 public use airports and an unknown number of private use airports, for a potential total number of airports from 150 to 500. MODOT assumes there could be 1 to 3 privately owned hangars at each airport; however, MODOT does not have any information on the value of the hangars or usage of the hangars for commercial or noncommercial purposes. Further, MODOT assumes existing hangars could be converted from commercial to noncommercial use and vice versa. Therefore, MODOT assumes the number of qualifying hangars can not be estimated.
Oversight assumes there would be an unknown loss of revenue to local governments, since this proposal would reduce the assessed valuation of certain aircraft hangars. The actual impact for any individual political subdivision of a reduction in assessed valuation of individual parcels of property would be subject to overall changes in total assessed valuation, and to the effects of other statutory revenue restraints. The effects of the other revenue restraints would vary from subdivision to subdivision. Reducing the increase in assessed valuation on individual parcels would in turn reduce the tax rate rollback required, primarily shifting this tax burden to other taxpayers. Oversight assumes this proposal could reduce local government revenues beginning in calendar 2005 (FY 2006).
Oversight assumes there would also be gains and losses to the Blind Pension fund of a little more than ½ of 1% of the losses to political subdivisions.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| BLIND PENSION FUND | |||
| Revenue reduction | |||
| Reduced tax collections | $0 | (Unknown) | (Unknown) |
| NET EFFECT ON BLIND PENSION FUND | $0 | (Unknown) | (Unknown) |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| POLITICAL SUBDIVISIONS | |||
| Revenue reduction | |||
| Reduced tax collections | $0 | (Unknown) | (Unknown) |
| NET EFFECT ON POLITICAL SUBDIVISIONS | $0 | (Unknown) | (Unknown) |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would classify all noncommercial aircraft hangars as residential property.
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
State Tax Commission
Office of Administration
Division of Budget and Planning
Department of Transportation
NOT RESPONDING
Office of the Cole County Assessor
Department of Public Safety
Mickey Wilson, CPA
Director
March 2, 2004