COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3541-27
Bill No.: Truly Agreed to and Finally Passed CCS for HS for SCS for SB's 915, 710 & 907
Subject: Transportation
Type: Original
Date: May 24, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | ($242,970) | ($73,455,342) | ($73,455,342) |
| State Road | $152,889,053 | $448,518,792 | $456,789,558 |
| State Transportation | $23,856,958 | $59,546,968 | $61,928,847 |
| Missouri Qualified Fuel Ethanol Producer Incentive | $1,192,848 | $2,977,348 | $3,096,442 |
| Missouri Qualified Biodiesel Producer Incentive | $1,192,848 | $2,977,348 | $3,096,442 |
| Total Estimated
Net Effect on All State Funds |
$178,888,737 | $440,565,114 | $451,455,947 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 6 pages.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $24,337,264 | $59,562,970 | $60,703,299 |
FISCAL ANALYSIS
ASSUMPTION
SECTION 142.803 - Removal of Sunset Clause for the 1992 motor fuel tax increase and four cent ($.04) motor fuel tax increase
Officials with the Department of Transportation (MoDOT) notes that the proposal would remove the sunset clause for the previously approved $0.06 fuel tax increase that is currently scheduled to expire on April 1, 2008
MoDOT anticipates as a long term implication the removal of the sunset clause would be to prevent the loss of fuel tax revenues as follows: FY 2008--$20,837,000; FY 2009--$253,047,000.
Officials of the Office of Administration's Division of Budget and Planning estimated net gallons of motor fuel sales for FY 2003 of 3,949,463,106 and assumed sales would increase 1.5% per year. A one-cent increase in motor fuel tax would yield an additional $39,494,631 in FY 2003. The additional money would be divided among the state (70% or $27,646,241), cities (15% or $5,924,195) and counties (15% or $5,924,195). This proposal would include a four-cent motor fuel tax increase. Oversight assumes five (5) months collections in FY 2003.
SECTION 144.020 - Sales/Use Tax Increase
Officials of the Office of Administration's Division of Budget and Planning have estimated that a one percent (1%) increase in sales tax would yield $648,233,000, of which $75,666,000 would be due to taxes on motor vehicles. Oversight assumes collections for the general part of a 1/2% sales tax for five months of FY 2003 would be $119,284,792 and would be distributed as follows in FY 2003:
State Transportation Fund (20%) - $23,856,958
Fuel Producer Incentive Funds (2%) - $2,385,696
State Road Fund (78%) - $93,042,138
ASSUMPTION (continued)
Distribution of the sales taxes derived from motor vehicle sales ($15,763,750) would be distributed pursuant to subsection 3 of section 30(b) of Article IV of the Missouri Constitution:
State Road Fund (75%) - $11,822,813
Cities (15%) - $2,364,563
County Aid Road Trust (10%) - $1,576,375
Distribution of the use taxes derived from motor vehicle sales ($2,596,402) would be:
State Road Fund (75%) - $1,947,032
Cities (15%) - $389,406
County Aid Road Trust (10%) - $259,604
Distributions in later years assumes four percent (4%) per year increases in sales tax collections.
SECTION 226.094 - Inspector General
Department of Transportation officials note that the Department already has an Inspector General. Therefore, these provisions would not have a fiscal impact.
SECTION 226.220 - Limits on Highway Fund Expenditures for State Agencies
Officials of the Department of Transportation noted that this section would cause savings to the Highway Fund and costs to the General Revenue Fund beginning in FY 2004. Officials estimate that removing the Highway Patrol from the cap on Highway Fund appropriations could, depending upon appropriations, increase costs to the Fund by $3,783,000 in FY 2004 and $7,860,000 in FY 2005. Officials from the Office of Administration's Division of Budget and Planning estimate a cost shift of $73,455,342 when the changes are fully phased in. Increased costs to general revenue would be incurred in FY 2004.
SECTION B - Election Clause
Advertisement costs for the proposal are estimated by the Office of the Secretary of State (SOS). Statewide newspaper publications of constitutional amendments cost approximately $1,157 per newspaper column inch based on estimates provided by the Missouri Press Service, which is then multiplied by three (3) for three multiple printings of the text of the proposal, the ASSUMPTION (continued)
introduction, title, fiscal note summary, and affidavit as required by the Constitution and State Statute. Therefore, the proposal would cost $3,471 per column inch ($1,157 x 3). Oversight estimates the total number of inches for the amendment to be 70 inches. Therefore, the total cost to the General Revenue Fund would be $242,970 ($3,471 x 70). The proposal would be on the ballot for the August, 2002, general primary election.
SECTION D - Referenda on Continuing Sales and Motor Fuel Tax Increases
The election costs for this provision would be outside the time period of the fiscal note.
| FISCAL IMPACT - State Government | FY 2003 | FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Cost - Highway Fund Agencies | $0 | ($73,455,342) | ($73,455,342) |
| Cost - Secretary of State Advertisement Costs | ($242,970) | $0 | $0 |
| ESTIMATED NET EFFECT TO GENERAL REVENUE FUND |
($242,970) |
($73,455,342) |
($73,455,342) |
| ROAD FUND | |||
| Income - "Regular" Sales Tax Increase | $93,042,138 | $232,233,176 | $241,522,504 |
| Income - "Motor V" Sales Tax Increase | $11,822,813 | $29,509,741 | $30,690,131 |
| Income - Use Tax Increase | $1,947,032 | $4,859,792 | $5,054,184 |
| Income - Motor Fuel Tax Increase | $46,077,070 | $112,243,741 | $113,927,397 |
| Savings - Costs Switched to General Revenue | $0 | $73,455,342 | $73,455,342 |
| Cost - Highway Patrol Appropriations | $0 | ($3,783,000) | ($7,860,000) |
| ESTIMATED NET EFFECT TO ROAD FUND | $152,889,053 | $448,518,792 | $456,789,558 |
| STATE TRANSPORTATION FUND | |||
| Income - Sales Tax Increase (20%) | $23,856,958 | $59,546,968 | $61,928,847 |
| ESTIMATED NET EFFECT ON STATE TRANSPORTATION FUND | $23,856,958 | $59,546,968 | $61,928,847 |
| MISSOURI QUALIFIED FUEL ETHANOL PRODUCER INCENTIVE FUND | |||
| Income - Sales Tax Increase (1%) | $1,192,848 | $2,977,348 | $3,096,442 |
| ESTIMATED NET EFFECT ON MISSOURI QUALIFIED FUEL ETHANOL PRODUCER INCENTIVE FUND | $1,192,848 | $2,977,348 | $3,096,442 |
| MISSOURI QUALIFIED BIODIESEL PRODUCER INCENTIVE FUND | |||
| Income - Sales Tax Increase (1%) | $1,192,848 | $2,977,348 | $3,096,442 |
| ESTIMATED NET EFFECT ON MISSOURI QUALIFIED BIODIESEL PRODUCER INCENTIVE FUND | $1,192,848 | $2,977,348 | $3,096,442 |
| FISCAL IMPACT - Local Government | FY 2003 | FY 2004 | FY 2005 |
| POLITICAL SUBDIVISIONS | |||
| Cities: Income - Sales and Use Tax Increases | $2,753,969 | $6,873,906 | $7,126,363 |
| Counties: Income - Sales and Use Tax Increases | $1,835,979 | $4,584,604 | $4,750,908 |
| Cities: Income - Motor Fuel Tax (15%) | $9,873,658 | $24,052,230 | $24,413,014 |
| Counties: Income - Motor Fuel Tax (15%) | $9,873,658 | $24,052,230 | $24,413,014 |
| ESTIMATED NET EFFECT TO CITIES AND COUNTIES | $24,337,264 | $59,562,970 | $60,703,299 |
FISCAL IMPACT - Small Business
Small businesses which make sales or purchases at retail would be affected by this proposal.
DESCRIPTION
This proposal would remove the 2008 sunset on the 6-cent motor fuel tax, increase the motor tax an additional four cents and would increase the state's sales and use tax by one-half of one percent. The proposal specifies the distribution and uses of the additional funds.
The proposal would authorize the Department of Transportation to have an Inspector General and would specify powers and duties of the Inspector General
This proposal contains an election clause.
This proposal is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would not affect Total State Revenue.
SOURCES OF INFORMATION
Office of Administration - Division of Budget and Planning
Department of Transportation
Department of Revenue
Secretary of State
Mickey Wilson, CPA
Acting Director
May 24, 2002