COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 3908-01
BILL NO.: Perfected SB 924
SUBJECT: Economic Development; Taxation and Revenue; Transportation.
TYPE: Original
DATE: March 9, 2000
FISCAL SUMMARY
| FUND AFFECTED | FY 2001 | FY 2002 | FY 2003 |
| General Revenue | $0 to $3,500 | $0 to $22,500 | $0 to $23,000 |
| Local Economic Dev. Sales Tax Fund | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds* |
$0 to $3,500 | $0 to $22,500 | $0 to $23,000 |
* This proposal is permissive and would have no fiscal impact without voter approval.
| 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* | ($6,000) to $340,000 | ($6,000) to $2,227,500 | ($6,000) to $2,277,000 |
* This proposal is permissive and would have no positive fiscal impact without voter approval.
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the City of Kirksville state this proposal would allow the city to use sales tax proceeds to fund the local portion of a city-state highway improvement project. The City of Kirksville estimated a 1/2% sales tax will generate $1,100,000 in the current fiscal year and forecast a growth rate of 2%. They also estimate election costs to the City of $6,000.
Officials from the State Treasurer's Office and the Department of Transportation assume this proposal will have no fiscal impact on their respective agencies.
In similar legislation from this year, the Department of Economic Development assumed no fiscal impact from this proposal.
In similar legislation from this year, the Department of Revenue (DOR) state this proposal authorizes an economic development sales tax for funding a transportation corporation in Kirksville. The DOR assumed this proposal will not cause an administrative fiscal impact to their agency.
Oversight assumes this proposal is permissive and would have no state impact unless voter approval occurred. For purposes of the fiscal note, Oversight estimated the possible revenues in a range of such proposal not being passed by voters, to a full one cent sales tax being passed by the voters in October, 2000. Oversight assumed the earliest possible effective date of such a sales tax would be April, 2001, with one month collection lag, therefore only two months of revenue are estimated for FY 2001.
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(10 Mo.)
GENERAL REVENUE FUND
Income - to General Revenue Fund $0 to $0 to $0 to
1% collection fee $3,500 $22,500 $23,000
LOCAL ECONOMIC DEVELOPMENT SALES TAX FUND
Income - Local Sales Tax proceeds $0 to $0 to $0 to
$346,500 $2,227,500 $2,277,000
Costs - Transfer to City of Kirksville $0 to $0 to $0 to
($346,500) ($2,227,500) ($2,277,000)
FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
(continued) (10 Mo.)
ESTIMATED NET EFFECT ON
LOCAL ECONOMIC DEVELOPMENT
SALES TAX FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
(10 Mo.)
CITY OF KIRKSVILLE
Costs - Elections costs $0 to $0 to $0 to
($6,000) ($6,000) ($6,000)
Income - Proceeds from local sales tax $0 to $0 to $0 to
$346,500 $2,227,500 $2,277,000
ESTIMATED NET EFFECT ON ($6,000) to ($6,000) to ($6,000) to
THE CITY OF KIRKSVILLE* $340,500 $2,227,500 $2,277,000
* This proposal is permissive and would require voter approval before the sales tax would become effective.
FISCAL IMPACT - Small Business
A direct fiscal impact to small businesses would be expected as a result of this proposal since they may have to pay more to purchase goods.
DESCRIPTION
This proposal authorizes the City of Kirksville to impose a sales tax for Economic Development. The meaning of "Economic Development" is expanded to include funding for a transportation corporation that provides public transportation. The sales tax may be approved by the voters at a rate of one-quarter of one percent, one-half of one percent, three-fourths of one percent, or one percent
DESCRIPTION (continued)
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
City of Kirksville
Department of Revenue
Department of Economic Development
Department of Transportation
State Treasurer's Office
Jeanne Jarrett, CPA
Director
March 9, 2000