This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0840 - Exempts Livestock Sales From Sales & Use Tax
L.R. NO. 3191-01
BILL NO. SB 840
SUBJECT: Agriculture; Taxation; Sales Tax
TYPE: Original
DATE: February 13, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
General Revenue $0 to ($309,925) $0 to ($371,910) $0 to ($371,910)
School District
Trust $0 to ($103,308) $0 to ($123,970) $0 to ($123,970)
Conservation $0 to ($12,914) $0 to ($15,496) $0 to ($15,496)
Parks and Soil $0 to ($10,331) $0 to ($12,397) $0 to ($12,397)
Total Estimated
Net Effect on All
State Funds $0 to ($436,478) $0 to ($523,773) $0 to ($523,773)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
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 ($154,963) ($185,955) ($185,955)
FISCAL ANALYSIS
ASSUMPTION
Officials of the Office of Administration indicate this proposal would not
fiscally impact their agency.
Department of Revenue officials state this proposal would modify the
definition of "livestock" to include cattle, calves, sheep, swine, ratite
birds including but not limited to ostrich and emu, aquatic products as
defined in section 277.024, RSMo, elk documented as obtained from a legal
source and not from the wild, goats, or horses, other equine, or rabbits
raised in confinement for human consumption. This proposal would also exempt
the sale of livestock as defined in the proposal.
Officials from the Department of Agriculture (DOA) stated they would not pay
state and local sales taxes on the sale of champion livestock at the Missouri
State Fair. DOA paid $1,681 in state and local sales taxes in FY96.
Oversight estimates assume this proposal would have a negative revenue impact
to all state and local sales tax funds as it would add horses, mules, and
goats to the list of animals classified as livestock. We have ranged our
estimates based on data we used from the 1992 Census of Agriculture for
Horses and Ponies sales. The range considers the possibility that the
compliance rate for payment of sales tax on these transactions may currently
be less than 100%.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Savings to General Revenue Fund
Sale of livestock at state fair $1,681 $1,681 $1,681
Loss to General Revenue Fund
Tax-exempt livestock sales ($1,681 ($1,681 ($1,681
to to to
$309,925) $371,910) $371,910)
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND $0 $0 $0
to to to
*($309,925) *($371,910) *($371,910)
*does not include any potential loss of sales tax revenue on the sale of feed
or feed additives to horses, mules, and goats.
SCHOOL DISTRICT TRUST FUND
Loss
Tax-exempt livestock sales $0 $0 $0
to to to
($103,308) ($123,970) ($123,970)
CONSERVATION FUND
Loss
Tax-exempt livestock sales $0 $0 $0
to to to
($12,914) ($15,496) ($15,496)
PARKS AND SOIL FUND
Loss
Tax-exempt livestock sales $0 $0 $0
to to to
($10,331) ($12,397) ($12,397)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Loss to Cities and Counties
Tax-exempt livestock sales $0 $0 $0
to to to
($154,963) ($185,955) ($185,955)
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENTS $0 $0 $0
to to to
($154,963) ($185,955) ($185,955)
DESCRIPTION
This act provides a sales tax exemption for all sales of livestock. This act
is similar to HB 952. SB 840 uses the definition of livestock used in TAFP
HCS/SB 109 (1995).
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
Department of Agriculture
1992 Census of Agriculture-Table 18