COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 2523-01

BILL NO.: Perfected SB 789

SUBJECT: Jail Districts: Sales Tax

TYPE: Original

DATE: February 28, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
General Revenue Unknown Unknown Unknown
Total Estimated

Net Effect on All

State Funds

Unknown Unknown Unknown

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.





FISCAL ANALYSIS



ASSUMPTION



Department of Corrections (DOC) assumes no fiscal impact.



Officials from the Department of Revenue assume this proposal would have no fiscal impact provided Jail District boundaries include the area within each member county.



Oversight assumes this proposal is permissive and would require Jail Districts that wanted to impose a sales tax, (that could not exceed 1%), to receive voter approval.



Jail Districts that would submit the question of levying a sales tax would have election costs.



Oversight assumes the state would retain a 1% collection fee which would be deposited in the States' General Revenue Fund. The amount of revenue that would be generated in a given year is unknown. Currently there are no Regional Jail Districts.



This proposal would result in an increase in Total Sales Revenues since Collection Fees are included in the General Revenue Fund and general revenues are included in the calculation of Total State Revenue.



Fiscal Impact - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003

GENERAL REVENUE FUND



Income - Department of Revenue

1% collection fee Unknown Unknown Unknown



ESTIMATED NET EFFECT ON

GENERAL REVENUE FUND UNKNOWN UNKNOWN UNKNOWN



FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003

LOCAL GOVERNMENTS



Income - Regional Jail Districts

Sales Tax Trust Fund

Unknown Unknown Unknown



Cost - Regional Jail Districts

Operations (Unknown) (Unknown) (Unknown)



ESTIMATED NET EFFECT

ON LOCAL GOVERNMENTS* $0 $0 $0



*Oversight assumes this proposal to be permissive. Jail Districts whose governing body would submit to the voters the question of implementing a local sales tax would have election cost. Oversight assumes that costs would not exceed income resulting in either zero or positive fund balances.

FISCAL IMPACT - Small Business



Small business located within a Regional Jail District, that would receive voter approval to impose a sales tax would expect to be fiscally impacted to the extent that they would collect and pay the sales tax within those districts.



DESCRIPTION



This proposal would authorize Regional Jail Commissions to have a 1/8%, 1/4%, 3/8% and 1/2% regional sales tax for the purpose of operating a Regional Jail District, if approved by qualified voters of the district. The proposal contains further provisions, which include: ballot language; implementation and effective date of the tax depositing revenue; use of funds collected; and establishment of the Regional Jail District Sales Tax Trust Fund and its operation. The provisions of this proposal will expire August 28, 2015



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 Corrections





NOT RESPONDING: Nodaway County, Dunklin County, Atchison County, Worth County, Dade County, Stoddard County, Scott County, Lawrence County and Vernon County.





Jeanne Jarrett, CPA

Director

February 28,2000