COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 4459-01

BILL NO.: SB 1007

SUBJECT: Cities, Towns and Villages; Tax and Revenue-General-Sales and Use-Transportation

TYPE: Original

DATE: March 6, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
General Revenue $0 $654,480 $1,308,960
Total Estimated

Net Effect on All

State Funds

$0 $654,480 $1,308,960



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
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 $0 $64,800,000 $129,600,000

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Revenue (DOR) state this legislation removes the sunset provision of the transportation sales taxes in Kansas City and St. Louis. The DOR assumes this proposal would have no fiscal or administrative impact on their agency.



Officials from the Department of Transportation (DHT) state this proposal would not fiscally impact their agency.



Officials of the Bi-State Development Agency state that this proposal would remove the expiration date of the Transportation Sales Tax under Chapter 94 RSMo. Bi-State staff stated in a similar proposal that for fiscal year ending 1998 collections of the Transportation Sales Tax for the City of St. Louis and St. Louis County were $129.6 million. The Bi-State staff states that this legislation deals only with the transportation sales tax for St. Louis City and St. Louis County, and that Kansas City's transportation sales tax is not effected by the proposed legislation.



Officials from the City of Kansas City Area Transportation Authority stated that this proposal would not fiscally impact Kansas City because the transportation tax in Kansas City was not approved by a vote of the people, but rather by the city council. Kansas City's transportation sales tax must be reaproved by the Missouri Legislature every two years.



Oversight assumes this proposal would not impact Kansas City's transportation sales tax



This proposal would result in an increase in Total State Revenues since Collection Fees are included in the General Revenue Fund and general revenues are included in the calculation of Total State Revenue.



FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003
Income to General Revenue Fund

1% Collection Fee



$0


$654,480


$1,308,960


ESTIMATED NET EFFECT ON

GENERAL REVENUE FUND





$0




$654,480




$1,308,960




FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003
Income to Political Subdivisions

Transportation Sales Tax



$0


$64,800,000


$129,600,000


ESTIMATED NET EFFECT ON

LOCAL FUNDS





$0




$64,800,000




$129,600,000


FISCAL IMPACT - Small Business



Small businesses would be expected to be fiscally impacted to the extent that they pay local sales tax on taxable items. The removal of the expiration date of the Transportation Sales Tax would cause small businesses to continue to pay the local rate for such taxable items.



DESCRIPTION



This act removes the sunset clause on the transportation sales tax in St. Louis City and the County of St. Louis.



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

Bi-State Development Agency

Department of Transportation

Kansas City Area Transportation Authority















Jeanne Jarrett, CPA

Director

March 6, 2000