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
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) |
FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
None | $0 | $0 | $0 |
Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
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.
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