COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0812-01

Bill No.: SB 195

Subject: Revenue Dept.; Taxation and Revenue-Sales

Type: Original

Date: January 24, 2001



FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
General Revenue $22,000,000 $0 $0
Total Estimated

Net Effect on All

State Funds

 $22,000,000 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Total Estimated

Net Effect on All

Federal Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
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.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Revenue (DOR) assume this legislation could result in a decrease in sales tax refunds for FY 02 of approximately $22 million. In a similar proposal, DOR assumed there would be minimal programming changes that could be completed with existing resources.



Officials from the Office of Administration, Budget and Planning (BAP) state DOR is better suited to respond to this proposal since this bill is more of an internal change in the way refunds are handled by DOR.





FISCAL IMPACT - State Government FY 2002

(10 Mo.)

 FY 2003 FY 2004
GENERAL REVENUE FUND
Revenue - General Revenue Fund

Reduction in sales tax refunds



$22,000,000

$0

$0


ESTIMATED NET EFFECT ON

GENERAL REVENUE FUND





$22,000,000



$0



$0
FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

 FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



This legislation will affect all businesses that collect sales tax.





DESCRIPTION



This act prohibits retailers from obtaining refunds for sales taxes without crediting the original purchasers.



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

Division of Budget and Planning



Jeanne Jarrett, CPA

Director

January 24, 2001