COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 0549-01
Bill No.: SB 147
Subject: Elderly; Revenue Dept.; Taxation and Revenue-General-Sales and Use
Type: Original
Date: January 2, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| General Revenue | ($1,923,736) | ($2,957,743) | ($3,031,687) |
| School District Trust | ($641,245) | ($985,914) | ($1,010,562) |
| Conservation | ($80,156) | ($123,239) | ($126,320) |
| Parks and Soil | ($64,125) | ($98,591) | ($101,056) |
| Total Estimated
Net Effect on All State Funds |
($2,709,262) | ($4,165,487) | ($4,269,625) |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | ($961,868) | ($1,478,872) | ($1,515,843) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ASSUMPTION
In response to similar legislation officials of the Department of Revenue (DOR) state the proposal would exempt the sale of coffins, caskets, burial cases and burial vaults from sales and use taxes.
DOR staff assume 80% of all taxable sales by funeral homes and crematories involve sales of the above items. Taxable sales for businesses in the SIC category "726-Funeral Service and Crematories" in FY 98 were $108,925,594. If it is assumed that 80% of these sales represent these items, the amount of taxable sales that would be exempted in FY 98 would be $87,140,475. 2.5% inflation is assumed.
Oversight assumes fiscal impact would not occur until October 1, 2001. This is because the law would go into effect August 28, 2001, and a one month lag is assumed. This would result in eight months of fiscal impact in FY 2002. Estimates are based on 1998 sales data.
This proposal would result in a decrease in Total State Revenues since Sales and Use Tax collections are included in the calculation of Total State Revenue.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| Loss - General Revenue Fund | |||
| Elimination of sales tax on Caskets, Coffins and Burials Cases and Vaults |
($1,923,736) |
($2,957,743) |
($3,031,687) |
| ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND |
($1,923,736) |
($2,957,743) |
($3,031,687) |
| SCHOOL DISTRICT TRUST FUND | |||
| Loss - School District Trust Fund | |||
| Elimination of sales tax on Caskets, Coffins and Burials Cases and Vaults |
($641,245) |
($985,914) |
($1,010,562) |
| ESTIMATED NET EFFECT ON
SCHOOL DISTRICT TRUST FUND |
($641,245) |
($985,914) |
($1,010,562) |
|
CONSERVATION FUND |
|||
| Loss - Conservation Fund | |||
| Elimination of sales tax on Caskets, Coffins and Burials Cases and Vaults |
($80,156) |
($123,239) |
($126,320) |
| ESTIMATED NET EFFECT ON
CONSERVATION FUND |
($80,156) |
($123,239) |
($126,320) |
| PARKS AND SOIL FUNDS | |||
| Loss - Parks and Soil Funds | |||
| Elimination of sales tax on Caskets, Coffins and Burials Cases and Vaults |
($64,125) |
($98,591) |
($101,056) |
| ESTIMATED NET EFFECT ON
PARKS AND SOIL FUNDS |
($64,125) |
($98,591) |
($101,056) |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| Loss to Cities | |||
| Elimination of sales tax on Caskets, Coffins and Burials Cases and Vaults |
($577,121) |
($887,323) |
($909,506) |
| Loss to Counties | |||
| Elimination of sales tax on Caskets, Coffins and Burials Cases and Vaults |
($384,747) |
($591,549) |
($606,337) |
| ESTIMATED NET EFFECT ON
LOCAL GOVERNMENT |
($961,868) |
($1,478,872) |
($1,515,843) |
FISCAL IMPACT - Small Business
Small businesses who sell coffins, caskets, burial case and vaults would be expected to be fiscally impacted to the extent that would no longer collect and pay sales tax on these items.
DESCRIPTION
This act exempts coffins and related burial items from sales taxes.
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
Jeanne Jarrett, CPA
Director
January 2, 2001