COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0214-02
Bill No.: Perfected SCS for SB 234
Subject: Revenue Dept.; Taxation and Revenue - General, Sales and Use; Public Service Commission; Utilities; Telecommunications
Type: Original
Date: March 8, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| General Revenue | $0 | $0 | $0 |
| School District Trust | $0 | $0 | $0 |
| Conservation | $0 | $0 | $0 |
| Parks and Soil | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| 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 | $0 | $0 | $0 |
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.
DOR is unable to estimate the revenue impact of this legislation. If in fact the language only codifies the way telecommunication sales tax is collected now, then there would be minimal impact to revenue. However, the Department is unable to determine this at this time.
In a similar proposal, 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.
Officials from the Department of Economic Development, Division of Public Service Commission (PSC) assume this legislation would not fiscally impact their agency. In addition, current federal and state law require telecommunication companies to itemize all regulated and non-regulated services on the customer's bill. Therefore, PSC assumes this bill would have a zero to minimal revenue loss impact on total state revenue.
Oversight assumes the revenue loss from this change in sales tax exemption for telecommunications services would be zero.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
|
Loss to State Funds: |
|||
| General Revenue Fund | $0 | $0 | $0 |
| School District Trust Fund | $0 | $0 | $0 |
| Conservation Sales Tax Fund | $0 | $0 | $0 |
| Parks and Soil Sales Tax Fund | $0 | $0 | $0 |
| ESTIMATED NET EFFECT ON ALL FUNDS |
$0 |
$0 |
$0 |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
|
Loss to Political Subdivisions |
$0 |
$0 |
$0 |
|
ESTIMATED NET EFFECT ON LOCAL POLITICAL SUBDIVISIONS |
$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 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.
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
Department of Economic Development
Public Service Commission
Jeanne Jarrett, CPA
Director
March 8, 2001