Fiscal Note - SB 0085 - Out-of-State Hunting and Fishing License Fees to be the Same as In-State if a Person Owns 100 Acres or More in MO
L.R. NO. 0261-01
BILL NO. SB 85
SUBJECT: License Fees
TYPE: Original
DATE: January 14, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Conservation
Commission ($808,898) ($983,038) ($1,007,614)
Total Estimated
Net Effect on All
State Funds ($808,898) ($983,038) ($1,007,614)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri Department of Conservation (MDC) assume the
proposed legislation would result in a loss of revenue to the Conservation
Commission Fund. MDC based their estimate of revenue loss on the assumption
that approximately one third of nonresident permits would be sold at a
reduced price to qualified out of state residents and members of their
immediate household. An assumption is made that if an out of state resident
would qualify for the reduced permit fees, then members of the qualified out
of state resident's immediate household would also qualify. Since time
constraints did not permit a statewide survey to determine the percentage of
out of state residents owning real property in Missouri, MDC made calls to
collectors' offices in counties in the Lake of the Ozarks area and learned
that between 25% and 60% of real property tax assessment bills are mailed to
owners living out of state and most of these have land, houses, lake property
(which may include time shares) valued at more than $10,000. Also, nearly
one third of the nonresident firearm deer permit buyers claim land ownership
in Missouri.
The assumed approach would be to have the qualified out of state resident
submit an application to MDC with attached proof of ownership of 100 or more
acres in Missouri or real property valued at $10,000 or more. Upon review
and acceptance, the information would be entered into a database of qualified
out of state residents and the applicant would be issued a heritage card to
use at any Missouri hunting and fishing permit vendor to purchase out of
state hunting and fishing privileges in Missouri at a reduced rate. When a
permit is purchased, the person would sign a certification that he/she still
owns the qualified property in Missouri. An audit sampling would be
performed to monitor potential abuse of the system.
Following is a listing of the loss of revenue calculations:
Estimated Current Current
Permit Type # Of Nonresident Resident Lost
Permits Fee Fee Revenue
Firearm Deer 3,300 $110 $11 $326,700
Archery Deer 604 $ 75 $15 $ 36,240
Turkey 2,865 $ 75 $11 $183,360
Non Resident Small
Game Hunting 1,870 $ 60 $9 $ 95,370
Non Resident
Fishing 14,000 $ 30 $9 $294,000
TOTAL $935,670
NOTE: The above revenue loss amount does not take into account any
additional license applicants due to this proposal and would therefore
represent the maximum revenue loss.
In addition to revenue loss, MDC officials assume they would need additional
staff to modify the hunting and fishing point of sale system and establish a
system to verify property ownership and the value of the property. They
would need one Investigator/Auditor (1 FTE at $26,892 per year) to develop
and implement the application procedure, develop the requirements to
modifying the hunting and fishing permit point of sale system and to conduct
audits for potential abuse and one Account Clerk/Data Entry (1 FTE at $16,776
per year) to review applications, maintain a database of qualified out of
state residents, and answer public and other phone calls. Additionally, they
would need temporary labor costing about $10,000 per year to assist during
deer, turkey, trout and other peak periods. MDC has requested associated
equipment and expense, as well as a new vehicle at $18,000. Also, a one-time
charge of $75,000 was requested for data processing services to develop a
database of qualified out of state residents and to modify the existing
hunting and fishing permit point of sale system.
However, Oversight assumes MDC could implement the legislation without an
entire new system, but by merely expanding procedures already in place.
Permit vendors who currently issue permits could add an additional procedure
whereby they charge in state fees to those who provide a validated copy of
their property tax receipt. Initially, there would be some one-time costs
for mailings, i.e., postage, copying fees and envelopes, to the permit
vendors alerting them to the change in law and the new procedure to apply
when selling permits to out of state residents. However, it should not be
necessary to hire additional staff to audit for compliance, since MDC staff
could expand the audit procedures currently conducted on permit vendors.
Additionally, this method allowing in state permit fees to certain persons
could be accomplished without the development of a database of qualified out
of state residents. Accordingly, Oversight has not included the cost for the
development of the database or the costs associated with the additional FTE,
including the vehicle, but has included an estimated one-time cost for
mailing information to permit vendors relating to the change in law and new
procedures/fees for selling out of state permits to certain qualifying
individuals.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
CONSERVATION COMMISSION FUND
Cost - Missouri Department of Conservation (MDC)
One time cost for mailings to 1,400
permit vendors ($10,000) $0 $0
CONSERVATION COMMISSION FUND
Loss - MDC
Decrease in Permit Fees ($798,898) ($983,038) ($1,007,614)
ESTIMATED NET EFFECT TO
CONSERVATION COMMISSION FUND ($808,898) ($983,038) ($1,007,614)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$ 0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
The proposed legislation would provide for out-of-state residents who own 100
or more acres in Missouri or have real property valued at $10,000 or more in
Missouri to have the same hunting and fishing permit fees as in-state
residents.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
This legislation could affect Total State Revenues.
SOURCES OF INFORMATION
Missouri Department of Conservation
This Fiscal Note is not an official copy and should not be quoted or cited.