Fiscal Note - SB 0247 - Maternity Homes and Domestic Violence Shelter Tax Credit
L.R. NO. 0348-01
BILL NO. Perfected SB 247
SUBJECT: Charities; Social Service Dept.; Public Safety Dept.; Taxation and
Revenue
TYPE: Original
DATE: February 24, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($156,182) ($160,772) to ($164,820) to
($4,160,772) ($4,164,820)
Total Estimated
Net Effect on All ($156,182) ($160,772) to ($164,820) to
State Funds ($4,160,772) ($4,164,820)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Federal ($7,648) ($12,959) ($13,283)
Total Estimated
Net Effect on All
Federal Funds ($7,648) ($12,959) ($13,283)
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 (unknown) (unknown)
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) state this proposal establishes
a domestic violence and maternity home tax credit. This legislation would
require modifications to the individual, corporate and financial institution
tax systems, forms and schedules. These modifications will be completed by
existing staff-resources. The Division of Taxation would request one Tax
Processing Specialist I for six months of each tax processing year for every
1,600 accounts claiming these credits. Responsibilities would be credit
verification, processing and error correction.
Officials of the Office of Administration (COA) state this proposal
establishes tax credits for donating to a domestic violence shelter or a
maternity home. COA staff state that there is very little data available to
reliably estimate the fiscal impact of giving tax credits for donations
greater than $100 to domestic violence shelters or maternity homes.
Therefore, COA estimates the impact to be between ($0 to $4,000,000), since
the maximum amount of credits that can be issued in one year is $2,000,000
for domestic violence shelter and $2,000,000 for maternity homes.
Officials from the Office of the Secretary of State (SOS) assume the proposed
legislation would require the printing of additional pages in the Missouri
Register and the Code of State Regulations and have estimated a one-time
publishing and distribution cost of $1,345 for FY 1998. SOS acknowledges that
the additional costs of printing could, to some degree, be offset by those
fees collected from subscriptions, given that the number of subscribers
remains constant or increases. Oversight assumes SOS could increase fees to
cover any additional costs, per Section 536.033, RSMo.
SOS would request one Computer Information Specialist for one third of the
year to handle the computer programs impacted by this legislation and the
increased data storage needs. Oversight assumes for purposes of this fiscal
note that the job duties of the Computer Information Specialist could be
handle by existing resources.
Oversight has allowed the State Data Center costs.
Officials of the Department of Insurance state this proposal allows insurance
companies a tax credit for maternity home and domestic violence shelter
contributions against premium tax payments to the state. Premium tax payments
are split 50/50 between General Revenue and the County Insurance Funds. The
revenue in the County Insurance Funds are allocated annually to the local
school districts by the Commissioners of Administration and the Department of
Elementary and Secondary Education. These credits effectively reduce the
amount of revenue available to the schools districts.
Officials of the Department of Public Safety (DPS) assume this proposal would
require DPS to promulgate regulations for the administration of the domestic
violence shelter program. DPS officials would request 3 FTE to carry out the
new program and the related travel and office expenses. The 3 FTE consist of
one Program Specialist to develop and administer classification regulations
and processing, and also to monitor the shelters; one Program Representative
for regulation of tax credits and equitable redistribution and allocation of
the credits; one Clerk Typist III to provide all clerical support for the
program.
Oversight assumes that the renovation costs requested by DPS would be
absorbed or requested as a budget appropriation.
Officials of the Department of Social Services (DOS) state this legislation
could increase the amount of money contributed to domestic violence shelters
and maternity homes and decrease the tax revenue due to the tax credit.
The Division of Family Services (DFS) will be required to promulgate rules
and establish procedures to calculate cumulative amounts of tax credits and
equally apportioning them among all facilities as well as reapportioning any
unused tax credits. In order to accomplish these tasks, DFS would request one
program development specialist. This individual would be responsible for
developing policy and procedures related to the tax credits and their
distribution.
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. It should be noted that because these credits can be
used against several different state funds, Oversight is not able to estimate
the impact to local school districts.
This proposal would result in a decrease in Total State Revenues since the
Individual Income tax collections are included in the calculation of Total
State Revenue.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(6 Mo.)
Cost to General Revenue Fund
Secretary of State (SOS)
Expense-State Data Center Costs ($334) $0 $0
Cost to General Revenue Fund
Department of Public Safety (DPS)
Personal Service (3 FTE) ($36,959) ($75,796) ($77,691)
Fringe Benefits ($10,544) ($21,625) ($22,165)
Expense and Equipment ($92,059) ($36,964) ($37,916)
Administrative costs to DPS ($139,562) ($134,385) ($137,772)
Cost to General Revenue Fund
Department of Social Services (DOS)
Division of Family Services
Personal Service (.67 FTE) ($9,873) ($20,248) ($20,754)
Fringe Benefits ($2,817) ($5,777) ($5,921)
Expense and Equipment ($3,596) ($362) ($373)
Administrative costs to DOS ($16,286) ($26,387) ($27,048)
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 ($160,772) ($164,820)
to to
($156,182) ($4,160,772) ($4,164,820)
Cost to Federal Funds
Department of Social Services (DOS)
Division of Family Services
Personal Service (.33 FTE) ($4,863) ($9,973) ($10,222)
Fringe Benefits ($1,387) ($2,845) ($2,916)
Expense and Equipment ($1,398) ($141) ($145)
Administrative Costs to DOS ($7,648) ($12,959) ($13,283)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(6 Mo.)
Loss to School Districts
Tax credits for contributions
to domestic violence shelters or
maternity homes $0 (unknown) (unknown)
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that
they make contributions to maternity homes or domestic violence shelters and
may take the income tax credit.
DESCRIPTION
This act provides for tax credits against a taxpayer's state tax liability
for contributions to maternity homes and for contributions to shelters for
victims of domestic violence. At least annually the Director of the
Department of Social Services shall determine which facilities in the state
may be classified as maternity homes. The Director of the Department of
Public Safety shall, at least annually, determine which facilities in the
state may be classified as shelters for victims of domestic violence. The
Director of the Department of Social Services and the Director of the
Department of Public Safety shall establish procedures so that the cumulative
tax credits will be equally apportioned to the facilities under their
respective departments. A taxpayer shall be permitted to claim a tax credit
up to fifty percent of the taxpayer's contribution to a shelter for victims
of domestic violence or to a maternity home. A taxpayer cannot claim a tax
credit unless the total amount of a taxpayer's contribution in the taxpayer's
taxable year is at least one hundred dollars. 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 Revenue
Department of Insurance
Department of Social Services
Department of Public Safety
Secretary of State's Office
Office of Administration
This Fiscal Note is not an official copy and should not be quoted or cited.