COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2589-01
Bill No.: SB 632
Subject: Revenue Dept.; Taxation and Revenue-Sales
Type: Original
Date: January 2, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | $22,000,000 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$22,000,000 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
In a similar prior proposal, officials from the Department of Revenue (DOR) assumed this legislation could result in a decrease in sales tax refunds for FY 03 of approximately $22 million. DOR assumed there would be minimal programming changes that could be completed with existing resources.
In a similar prior proposal, officials from the Office of Administration, Budget and Planning (BAP) stated 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 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| 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 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $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 2, 2002