COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 4379-02

Bill No.: SB 1154

Subject: Business and Commerce; Taxation & Revenue - General, Sales and Use

Type: Original

Date: February 21, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Various State Funds $0 to Unknown $0 to Unknown $0 to Unknown
Total Estimated

Net Effect on All

State Funds

$0 to UNKNOWN $0 to UNKNOWN $0 to UNKNOWN



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government $0 to UNKNOWN $0 to UNKNOWN $0 to UNKNOWN

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION



Officials of the Department of Revenue (DOR) state this legislation, as worded, would implement through the General Assembly the simplified sales and use tax administration act (SSTP). DOR assumes this legislation would not fiscally impact their agency, but would have an unknown impact on state revenue.



Officials of the Office of Administration, Budget and Planning (BAP) state this bill has no fiscal impact to their agency and DOR is better suited to respond to this proposal.



Officials of the Office of the Secretary of State (SOS), Division of General Counsel and the Department of Highway and Transportation (DHT) assume this bill creates the Simplified Sales and Use Tax Administration Act. SOS and DHT assume this proposal would have no direct fiscal impact on their agencies.

Oversight assumes, for purposes of this fiscal note, this proposal would increase compliance of sales/use tax collections once an agreement is reached with other states. This amount is unknown, as well as when this will occur, therefore Oversight will reflect the revenue impact of this proposal as zero to unknown to various state and local funds.



This legislation could increase total state revenues.





FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
VARIOUS STATE FUNDS
Income -
Increase in tax compliance $0 to

Unknown

$0 to

Unknown

$0 to

Unknown

TOTAL ESTIMATED NET EFFECT ON VARIOUS STATE FUNDS $0 to

UNKNOWN

$0 to

UNKNOWN

$0 to

UNKNOWN



FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005



VARIOUS LOCAL FUNDS
$0 to

UNKNOWN

$0 to

UNKNOWN

$0 to

UNKNOWN



FISCAL IMPACT - Small Business



Small businesses would expect to be fiscally impacted only to the extent that the simplified sales and use tax system reduces the cost to comply with Missouri's sales and use tax laws in the future.





DESCRIPTION



This bill creates the Simplified Sales and Use Tax Administration Act. The administration shall consist of five members, one of which will be selected by the Governor, and one selected from each the majority and minority of the House and Senate.



The administration will have the duty of entering into multi-state discussions for the purposes of reviewing and amending a multi-state agreement concerning simplified sales and use tax processes. The administration shall report to the committee charged with reviewing tax issues annually.



The authority of the delegates to review and amend or accept multi-state agreements will have no effect on the laws or obligations of this state. The approval of the General Assembly and the Governor will be required before any law of this state shall be effected by a multi-state agreement.



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

Secretary of State

Department of Highway and Transportation

Office of Administration,

Budget and Planning

Mickey Wilson, CPA

Acting Director February 21, 2002