SB 0937 - Fiscal Note

Fiscal Note - SB 0937 - Tax Law Changes, Tax Credit-Maternity Homes, Domest. Violen.

L.R. NO.  3524-01
BILL NO.  SB 937
SUBJECT:  Domestic Violence
TYPE:     Original
DATE:     March 1, 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

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             $0                  $0                  $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Social Services and Office of Administration
indicate this proposal would not fiscally impact their agencies.

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 act 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 $100 must be donated.  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

Office of Administration
Department of Revenue
Department of Social Services