COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1832-01
Bill No.: SB 577
Subject: Tobacco Products; Revenue Dept.; Taxation and Revenue-Sales and Use
Type: Original
Date: March 7, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| 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 from the Department of Revenue (DOR) state this legislation requires retailers who erroneously or illegally collect sales tax on cigarettes to refund it to the person who paid it or to pay it over to the Director of Revenue. DOR staff state that this proposal would not fiscally impact their agency.
The passage of SB 477 et al. in 1994 prevented the issuance of refunds as a result of charging sales tax on cigarette tax. Oversight assumes, for purposes of this fiscal note, that the provisions of this proposal would result in either a net zero or minimal positive fund balance. The fiscal impact will be shown as zero.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $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 bill disallows any refund to a cigarette retailer of sales tax illegally or erroneously overcharged on the amount of any cigarette excise tax included in the retail price of cigarettes
unless the overcharge is refunded to the person who paid the tax. If the illegally or erroneously collected overcharge on the amount of any cigarette excise tax is not refunded to the
person who paid the tax, it will be retained by the Director of Revenue.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCE OF INFORMATION
Department of Revenue
Jeanne Jarrett, CPA
Director
March 7, 2001