COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2530-01
BILL NO.: SB 572
SUBJECT: Taxation-Income; Revenue Dept.; County Government
TYPE: Original
DATE: February 7, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue | ($24,595) | ($198,500,000) | ($202,500,000) |
| Total Estimated
Net Effect on All State Funds |
($24,595) | ($198,500,000) | ($202,500,000) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| 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.
ASSUMPTION
Official of the Department of Revenue (DOR) state this legislation allows a tax credit up to $150 for taxes paid on residential property owned by the taxpayer. This legislation is effective January 1, 2001, and the tax credit cannot exceed the taxpayer's liability.
The number of taxpayers eligible for this credit is unknown at this time. The Division of Taxation will need one temporary tax season employee (a cost of $6,067) for every 15,000 returns filed with this credit and one tax season employee for every 3,000 pieces of correspondence received regarding the credit.
This legislation will require modifications to the corporate and individual income tax systems. The Division of Taxation estimates these modifications, including programming changes, will require 1,038 hours of overtime at a cost of $31,213. Modifications to the income tax returns and schedules will be completed with existing resources. State Data Center charges will increase due to the additional storage and fields to be captured. Funding in the amount of $6,755 is requested for implementation costs and $1,624 for on-going costs.
Oversight, for purposes of this fiscal note, has assumed the Division of Taxation could handle the provisions of this proposal utilizing 519 hours of overtime at a cost of $15,606, plus fringe benefits of $4,799. In addition to the programming changes, Oversight has allowed $4,190 in funding for State Data Center changes.
Officials of the Office of Administration (COA) state that there are approximately 1,052,084 combined filers and 1,117,388 single resident filers in Missouri. According to the 1990 Missouri Census of Housing 61% of Missourians live in owner occupied housing. COA staff estimate assumes that 61% of filers will take the property tax credit. The average residential property tax in Missouri is $720. An annual 2% growth rate was assumed.
This proposal would result in a decrease in Total State Revenues.
| FISCAL IMPACT - State Government | FY 2001
(6 Mo.) |
FY 2002 | FY 2003 |
| GENERAL REVENUE FUND | |||
|
Loss to General Revenue Fund Tax credit for taxes paid on residential property |
$0 |
($198,500,000) |
($202,500,000) |
|
Costs - Department of Revenue Reprogramming costs |
($24,595) |
$0 |
$0 |
|
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
($24,595) |
($198,500,000) |
($202,500,000) |
| FISCAL IMPACT - Local Government | FY 2001
(6 Mo.) |
FY 2002 | FY 2003 |
| $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 act allows individual income taxpayers to claim a credit against their state income tax liability for up to $150 of their property tax liability. The credit can be taken for the 2001 tax year and thereafter.
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
Jeanne Jarrett, CPA
Director
February 7, 2000