SB 0847 - Fiscal Note

Fiscal Note - SB 0847 - Tax Law Changes/Tax Credit-Maternity Homes/Domestic Violence

L.R. NO.  3176-01
BILL NO.  SB 847
SUBJECT:  Domestic Violence
TYPE:     Original
DATE:     February 6, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998              FY 1999
General Revenue                 $0  $0 to ($4,000,000)   $0 to ($4,000,000)

Total Estimated
Net Effect on All
State Funds                     $0  $0 to ($4,000,000)   $0 to ($4,000,000)


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998              FY 1999
Total Estimated

Net Effect on All
Federal Funds                   $0                  $0                   $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998              FY 1999
Local Government                $0                  $0                   $0

                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Social Services indicate this proposal would
not fiscally impact their agency.

Officials of the Department of Revenue state this proposal would require
modifications to the individual, corporate and financial institution tax
systems, forms and schedules. These modifications would be completed by
existing personnel.

The Division of Taxation would request one Tax Audit Analyst I for every
25,000 returns that claim this credit. Responsibilities would be credit
verification, processing and error correction.

Oversight assumes the Department of Revenue could handle this proposal with
their current resources.

The Department of Social Services and Department of Revenue did not estimate
a fiscal impact for this proposal, therefore Oversight has shown a loss to
General Revenue ranging from $0 to $4,000,000 for the Income Tax Credits for
contributions to Domestic Violence Shelters and Maternity Homes.

FISCAL IMPACT - State Government           FY 1997      FY 1998      FY 1999
                                          (10 Mo.)
Loss to General Revenue Fund
   Income Tax Credit for Contributions
   to Domestic Violence Shelters                             $0           $0
                                                             to           to
                                                $0 ($2,000,000) ($2,000,000)

Loss to General Revenue Fund
   Income Tax Credit for Contributions
   to Maternity Homes                                        $0           $0
                                                             to           to
                                                $0 ($2,000,000) ($2,000,000)

ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND                                         $0           $0
                                                             to           to
                                                $0 ($4,000,000) ($4,000,000)

FISCAL IMPACT  - Local Government          FY 1997      FY 1998      FY 1999
                                          (10 Mo.)

                                                 0            0            0

DESCRIPTION

This proposal would make several technical changes to tax statutes and enact
two new sections. Section 1 grants taxpayers a tax credit for 50% of the
amount donated to domestic violence shelters. Section 2 grants a tax credit
for 50% of the amount donated to maternity homes. In  order to receive either
credit, at least $250 must be donated and the maximum credit is $50,000.  The
credit may only be used up to the amount of the taxpayer's tax liability, but
may be carried  forward for four years. The aggregate maximum amount of the
credits allowed in a fiscal year is $4 million, $2 million under each
section.

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 Social Services
Department of Revenue


NOT RESPONDING:  Office of Administration