COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4652-01
Bill No.: SB 1298
Subject: Property Tax, Sales Tax, Real Property, Personal Property, Transportation, Bi-State Development Agency, Kansas City Area Transportation Authority
Type: Original
Date: March 7, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on General Revenue Fund |
(Unknown) | (Unknown) | (Unknown) |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Blind Pension | $0 | (Unknown) | (Unknown) |
| School District Trust | (Unknown) | (Unknown) | (Unknown) |
| Conservation | (Unknown) | (Unknown) | (Unknown) |
| Parks and Soil | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on Otherl State Funds |
(Unknown) | (Unknown) | (Unknown) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 6 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 | (Unknown) | (Unknown) | (Unknown) |
ASSUMPTIONS
Officials from the Department of Revenue (DOR) assume there would be no administrative impact to their organization. DOR officials assume this proposal could result in unknown reductions in property and sales taxes.
Officials from the State Tax Commission and the Department of Economic Development assume this proposal would result in no impact on their organizations.
Officials from the Office of Administration, Division of Budget and Planning, assume this proposal would have no direct impact on their organization but could have an unknown negative effect on total state revenues.
Officials from the Bi-State Development Agency (Bi-State) assume this proposal would allow Bi-State to participate in the specific asset financing transactions defined in the proposal. Bi-State officials stated their organization would not enter into such transactions unless there was a net benefit to Bi-State.
ASSUMPTIONS (continued)
Oversight assumes that this proposal would exempt from sales and property taxation those assets transferred to third parties as a result of certain structured financing agreements. Oversight notes the existing statutory exemption exempts from taxation only assets owned by, and sales to, the interstate compact agencies. Oversight assumes the proposal would result in unknown reductions in local sales and property tax collections for political subdivisions where otherwise taxable property related to interstate compact agencies is located.
In addition, Oversight assumes there could be an unknown negative impact to the Blind Pension Fund from reduced property tax collections, and to the General Revenue Fund, School District Trust Fund, Conservation Fund, and Parks and Soils Fund from reduced sales tax collections. The first fiscal impact of this proposal could be for sales taxes collected in FY 2005, and for 2005 property taxes collected in FY 2006.
Officials from the City of Kansas City, Jackson County, St. Louis County, the City of St. Louis, and the Kansas City Area Transportation Authority did not respond to our request for information on this proposal.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| GENERAL REVENUE FUND | |||
| Revenue reduction | |||
| Sales Taxes | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
(Unknown) |
(Unknown) |
(Unknown) |
| BLIND PENSION FUND | |||
| Revenue reduction | |||
| Property Taxes | $0 | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON BLIND PENSION FUND |
$0 |
(Unknown) |
(Unknown) |
| FISCAL IMPACT - State Government (continued) | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| CONSERVATION FUND | |||
| Revenue reduction | |||
| Sales Taxes | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON CONSERVATION FUND |
(Unknown) |
(Unknown) |
(Unknown) |
| PARKS AND SOIL FUNDS | |||
| Revenue reduction | |||
| Sales Taxes | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON PARKS AND SOIL FUNDS |
(Unknown) |
(Unknown) |
(Unknown) |
| SCHOOL DISTRICT TRUST FUND | |||
| Revenue reduction | |||
| Sales Taxes | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON SCHOOL DISTRICT TRUST FUND |
(Unknown) |
(Unknown) |
(Unknown) |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| POLITICAL SUBDIVISIONS | |||
| Revenue reduction | |||
| Property and Sales Taxes | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON POLITICAL SUBDIVISIONS |
(Unknown) |
(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 create a tax exemption for property leased or transferred by certain interstate compact agencies. The proposal would exempt such property from taxation for state, county or local purposes:
DESCRIPTION (continued)
(a) The right of the interstate compact agency to use, control, and possess the property is terminated.
(b) The interstate compact agency no longer has an option to purchase or otherwise acquire the property.
(c) There is no provision for reverter of the property within the limitation period for reverters.
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 Economic Development
Department of Revenue
State Tax Commission
Bi-State Development Agency
Office of Administration
Division of Budget and Planning
NOT RESPONDING
Kansas City Area Transit Authority
City of Kansas City
Jackson County
City of St. Louis
St. Louis County
Mickey Wilson, CPA
Director
March 7, 2004