COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 2741-01

BILL NO.: SB 0674

SUBJECT: Agriculture Department; Llamas

TYPE: Original

DATE: December 30, 1999




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
General Revenue ($92,391) ($110,869) ($110,869)
School District Trust ($30,797) ($36,956) ($36,956)
Conservation ($3,850) ($4,620) ($4,620)
Parks and Soils ($3,080) ($3,696) ($3,696)
Total Estimated

Net Effect on All

State Funds

($130,118) ($156,141) ($156,141)



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
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 ($46,195) ($55,435) ($55,435)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



The Department of Revenue (DOR) and the Department of Agriculture (AGR) assume they would not be fiscally impacted by this proposal.



Oversight assumes this proposal would allow llamas to be treated as livestock for sales tax purposes. According to the AGR, there are approximately 4,500 llamas in Missouri and llamas eat approximately 15 pounds of food per day. Oversight assumes the average cost for a pound of llama feed is $.125. For purposes of providing a fiscal estimate for this proposal, Oversight used $.15 per pound of feed to account for other items that would be exempt from state and local sales tax such as feed additives, bedding and medications. Accordingly, Oversight estimated there would be sales of $3,695,625 per year that would be exempt from state and local sales tax under 144.030 2 (22) RSMo. Oversight assumes this would result in a total loss of state sales tax revenue in the amount of $156,141. There would also be a loss of sales tax revenue to local governments in the amount of $55,435 per year.





FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003

(10 Mo.)

GENERAL REVENUE FUND



Loss - Sales tax exemption ($92,391) ($110,869) ($110,869)



SCHOOL DISTRICT TRUST FUND



Loss - Sales tax exemption ($30,797) ($36,956) ($36,956)



CONSERVATION SALES TAX FUND



Loss - Sales tax exemption ($3,850) ($4,620) ($4,620)



PARKS & SOILS TAX FUND



Loss - Sales tax exemption ($3,080) ($3,696) ($3,696)









FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003

(10 Mo.)

Loss - Sales tax exemption

Cities ($27,717) ($33,261) ($33,261)

County Aid Road Trust Fund (18,478) (22,174) (22,174)



($46,195) ($55,435) ($55,435)





FISCAL IMPACT - Small Business



Small businesses that produce and sell llamas could be expected to be fiscally impacted by this proposal. Their production costs could be reduced by the amount of sales tax avoided.



DESCRIPTION



This bill adds llamas to the definition of livestock rather than exotic animals.



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 Agriculture

Department of Revenue



Jeanne Jarrett, CPA

Director

December 30, 1999