COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3936-02
Bill No.: SCS for SB 959
Subject: Taxation and Revenue - Income; Banks and Financial Institutions
Type: Original
Date: February 13, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| Total Estimated
Net Effect on All State Funds |
(UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| 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 4 pages.
ASSUMPTION
Officials from the Department of Insurance and the Office of Secretary of State indicated that this proposed legislation will have no fiscal impact on their agencies.
Officials from the Public School Retirement System of Missouri and the Non-Teacher School Employee Retirement Systems of Missouri state that this proposed legislation does not appear to fiscally impact either agency.
In response to the introduced version of this proposal, officials from Missouri State Employees Retirement System state that this proposal does not affect their agency.
Department of Economic Development - Division of Credit Unions state that this proposal would impose no new duties on the their agency; therefore, there would be no fiscal impact.
Officials from the Department of Economic Development - Division of Finance (DED-FIN) stated that this proposal does not add new income apportionment elections; it simply repeals by implication the annual review process and entitles companies to the election. DED-FIN assumes this proposal would have no discernible effect on state revenue.
Officials from the Department of Revenue - Division of Taxation and Collections (DOR) stated that this version of the proposal removes the annual certification process for election of income tax computation for investment fund service corporations and sub-chapter S corporations. Since it is unknown how many entities would be affected DOR could make no estimate of fiscal impact, either negative or positive.
Officials from the Office of Administration - Division of Budget and Planning indicated there would be no additional costs or savings to the Office of Administration. BAP officials do estimate the proposal could decrease state revenues.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE | |||
| Loss - Reduction in Corporate Income Tax Paid |
(UNKNOWN) |
(UNKNOWN) |
(UNKNOWN) |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small business could be impacted due to possible change in corporate income tax.
DESCRIPTION
This proposed legislation specifically applies the separate multistate income calculation set forth in subdivision 5 of subsection 2 of Section 143.451, RSMo, to investment fund service corporations and sub-chapter S corporations. That subdivision considers qualifying sales of such corporations to be considered wholly within Missouri only to the extent that the fund shareholders of the investment companies reside in Missouri.
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 Insurance
Public School Retirement System of Missouri
Non-Teacher School Employee Retirement System of Missouri
Office of the Secretary of State
Corporations Division
Department of Revenue
Division of Taxation and Collections
Office of Administration
Budget and Planning
Department of Economic Development
Division of Finance
Division of Credit Unions
Not Responding
County Employees' Retirement System
Missouri State Employees Retirement System
Mickey Wilson, CPA
Acting Director
February 13, 2002