COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3684-03
Bill No.: SB 901
Subject: Taxation and Revenue - Property, Real and Income
Type: Original
Date: January 22, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | ($32,097) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on All State Funds* |
($32,097) | (Unknown) | (Unknown) |
*Not expected to exceed $100,000 annually.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| 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
Officials from the Department of Revenue (DOR) state this legislation increases the maximum upper limit for senior citizens property tax relief from $25,000 to $30,000 beginning January 1, 2003, to $35,000 beginning January 1, 2004, and $40,000 for tax years beginning on or after January 1, 2005.
Taxation will have to modify the PTC tables on the MINITS and PC systems. DOR estimated that 692 hours of programming at a cost of $23,085 will be needed. State Data Center costs would be $9,012. Personal Tax will need One Tax Season Temporary for every 10,000 additional claims filed, One Tax Processing Tech I for every 20,000 additional errors generated by this legislation (PTC has a 25% error rate) and One Tax Processing Tech I for every 3,000 additional pieces of correspondence received regarding this new legislation. This legislation will create additional walk-ins and phones calls for the new qualifiers in the tax assistance areas. One Tax Collection Tech I will be need for every 2,149 walk-ins to help complete their claims and One Tax Collection Tech I for every 15,000 additional calls received on the income tax hotline (751-3505 and 751-7200).
Oversight assumes the DOR will request any additional FTE needed through the budget request. Oversight has included in this fiscal estimate the administrative costs for programming and implementation costs of $32,097.
Officials from the Office of Administration - Budget and Planning (BAP) defer to estimates provided by University of Missouri - Research Center and/or the Department of Revenue regarding SB 901 and for other legislation that purports to change the parameters of the Senior Citizen Property Tax Rebate Program. At this time, BAP does not have a Senior Citizen Property Tax Rebate "model" that would be needed to perform such simulations. This bill would not affect the Office of Administration.
Officials from the University of Missouri Research Center (UMRC) state this legislation would only increase the eligible households by 135. Unless the lower limit is increased or the percentages in the table adjusted, the increase in the upper income limit of the credit makes little difference. With this legislation, a few senior citizens could actually have a decrease in their credit. Therefore, Oversight assumes this legislation, as written, will have an unknown impact, expected to be less than $100,000.
This legislation will decrease total state revenues.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
|
Loss - General Revenue Fund |
|||
| Increase in Property Tax Credit | $0 | (Unknown) | (Unknown) |
| Cost - Dept. of Revenue | |||
| Programming changes | ($32,097) | $0 | $0 |
| ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND* |
($32,097) |
(UNKNOWN) |
(UNKNOWN) |
| *Not expected to exceed $100,000 annually |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $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 act increases the maximum upper limit of the income thresholds by five thousand dollars in the years 2003, 2005 and 2007. The act also removes outdated language from Section 135.030, RSMo.
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
Budget and Planning
University of Missouri
Research Center Mickey Wilson, CPA
Acting Director
January 22, 2002