Fiscal Note - SB 0331 - Sales Tax Exemptions
L.R. NO. 0639-03
BILL NO. Perfected SCS for SB 331
SUBJECT: Taxation and Revenue-Sales and Use
TYPE: Original
DATE: March 26, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
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 of the Department of Revenue (DOR) state that this proposal changes
the project exemption certificate procedure to be sure that the exempt entity
is responsible for any tax liability if they have issued a project exemption
certificate outside their statutory authority. This is a protection measure
for those contractors relying on such certificates.
Oversight assumes this proposal would not effect Total State Revenues.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
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
Under this act, if a tax-exempt entity issues project exemption certificates
for the purchase of tangible personal property and materials which are
incorporated into or consumed in the construction of its project and the
entity is subsequently found not to have authority to issue such
certificates, or if the property and materials purchased are not related to
the entity's exempt functions and activities, the issuing entity shall be
liable for the tax owed on such personal property and materials.
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
This Fiscal Note is not an official copy and should not be quoted or cited.