COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1954-02
Bill No.: SB 524
Subject: Agriculture and Animals; Revenue Dept.; Taxation and Revenue - General, Sales and Use
Type: Original
Date: February 28, 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 as worded would exempt all sales of materials purchased for use in the construction of fencing utilized in the production of livestock or poultry. This also removes the limitation on the farm use exemption on diesel fuel.
Administrative Impact - None; however, DOR noted that this legislation would completely exempt diesel fuel used for farm use. This exemption will reduce DOR's collection by $179,000 - this is a portion and does not include the sales tax collected at the retailer which would be reported by the retailer on the sales tax return which can not be identified. Therefore, the revenue impact is unknown for the entire piece of legislation.
The Department of Agriculture (AGR) officials assume this bill would not affect AGR because AGR does not collect taxes for all sales of materials purchased for use in the construction of fencing utilized in the production of livestock or poultry.
Officials from the Office of Administration - Budget and Planning (BAP) state this bill has no impact on BAP. This proposal would provide a sales tax exemption for the purchase of fence building material for fences used in livestock or poultry production, and removes the limitation on the farm use exemption for diesel fuel. BAP has not been able to find any empirical basis to estimate the fiscal impact of this proposal and believes AGR is better suited to provide estimates on this proposal.
Since DOR could only estimate a portion of the revenue loss for the removal of the limitation on the farm use diesel fuel exemption and Oversight does not possess data regarding diesel fuel usage on farms, nor the quantity of fencing material purchases for livestock or poultry, revenue losses have been stated as unknown, expected to exceed $100,000 annually to all affected funds.
| 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 bill exempts from state and local sales and use taxes all materials used in the construction of fencing utilized in the production of livestock and poultry, and removes the limitation on farm use exemption for diesel.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
This proposal would result in a decrease in Total State Revenues.
SOURCES OF INFORMATION
Department of Revenue
Department of Agriculture
Office of Administration
Budget and Planning
Jeanne Jarrett, CPA
Director
February 28, 2001