COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0214-01
Bill No.: SB 234
Subject: Revenue Dept.; Taxation and Revenue - General, Sales and Use; Telecommunications
Type: Original
Date: February 9, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| General Revenue | (Unknown) | (Unknown) | (Unknown) |
| School District Trust | (Unknown) | (Unknown) | (Unknown) |
| Conservation | (Unknown) | (Unknown) | (Unknown) |
| Parks and Soil | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on All State Funds* |
(UNKNOWN) |
(UNKNOWN) | (UNKNOWN) |
* Expected to exceed $100,000 annually.
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials of the Department of Revenue (DOR) state this legislation would not have an administrative impact on its agency.
Officials from the Office of Administration - Budget and Planning (BAP) state this proposal would expand the state sales tax exemption for certain types of telecommunication services. BAP has not been able to find any empirical basis to estimate the fiscal impact of this proposal. This bill has no fiscal impact on BAP.
Since Oversight does not possess data to estimate the revenue loss from this expanded sales tax exemption for telecommunications services, revenue losses have been stated as unknown, expected to exceed $100,000 annually to all affected funds.
This proposal would result in a decrease in Total State Revenues.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
|
Loss to State Funds: |
|||
| General Revenue Fund | (Unknown) | (Unknown) | (Unknown) |
| School District Trust Fund | (Unknown) | (Unknown) | (Unknown) |
| Conservation Sales Tax Fund | (Unknown) | (Unknown) | (Unknown) |
| Parks and Soil Sales Tax Fund | (Unknown) | (Unknown) | (Unknown) |
| ESTIMATED NET EFFECT ON ALL FUNDS* |
(UNKNOWN) |
(UNKNOWN) |
(UNKNOWN) |
| *Expected to exceed $100,000 annually |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
|
Loss to Political Subdivisions |
(Unknown) |
(Unknown) |
(Unknown) |
|
ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS |
(UNKNOWN) |
(UNKNOWN) |
(UNKNOWN) |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act extends an existing state sales tax exemption for certain types of telecommunications which are separately stated on a customer's bill to includes such services if they are separately stated on records maintained by the seller in the ordinary course of business. The act also adds interstate transmissions of information to the list of telecommunications services which are exempted from state sales tax.
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
Office of Administration
Budget and Planning
Jeanne Jarrett, CPA
Director
February 9, 2001