COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3704-01
BILL NO.: SB 840
SUBJECT: Workers Compensation; Insurance - General; Revenue Department
TYPE: Original
DATE: February 7, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| Workers Compensation | $0 to ($22,167) | $0 to ($22,167) | $0 to ($22,167) |
| Total Estimated
Net Effect on All State Funds |
$0 TO ($22,167) | $0 TO ($22,167) | $0 TO ($22,167) |
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| None | |||
| 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 3 pages.
ASSUMPTION
Officials from the Department of Labor and Industrial Relations and the Department of Revenue assume this proposal would not fiscally impact their agencies.
Department of Insurance (INS) officials assume that contributions for neighborhood assistance would be made by workers compensation insurers in the same proportion that other insurers have made such contributions. INS states that on an annual basis, insurers took credit for neighborhood assistance of .003% of net premiums. INS states that annually workers compensation insurers during 1996-1998 wrote a mean net premium subject to tax of $738,916,068. Neighborhood assistance tax credits at a rate of .003% of this figure would be $22,167 annually. INS estimates a range of $0 - $22,167 annually in decreased premium tax is being show as the fiscal impact to the Workers Compensation Fund.
Officials from the Office of Administration - Budget and Planning deferred to the revenue estimates provided by INS. The proposal would have no impact to their agency.
| FISCAL IMPACT - State Government | FY 2001
(10 Mo.) |
FY 2002 | FY 2003 |
| WORKERS COMPENSATION FUND | |||
| Loss - Department of Insurance | |||
| Reduction in premium taxes | $0 to ($22,167) | $0 to ($22,167) | $0 to ($22,167) |
| ESTIMATED NET EFFECT ON WORKERS COMPENSATION FUND |
$0 TO ($22,167) |
$0 TO ($22,167) |
$0 TO ($22,167) |
| FISCAL IMPACT - Local Government | FY 2001
(10 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 proposal would allow insurance carriers to take a tax credit on the taxes they pay on net deposits, net premiums or net assets of insurance carriers under the worker's compensation statute.
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
Office of Administration
Division of Budget and Planning
Department of Insurance
Department of Labor and Industrial Relations
Department of Revenue
Jeanne Jarrett, CPA
Director
February 7, 2000