Fiscal Note - SB 0285 - Allocates Taxes Paid By Nonresident Athletes and Entertainers to Certain Funds
L.R. NO. 1017-02
BILL NO. SCS for SB 285
SUBJECT: Administration, Office of; Taxation and Revenue-Income;
Appropriations; Entertainment, Sports and Amusements
TYPE: Original
DATE: April 23, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue $0 ($4,772,040) ($5,010,640)
Missouri Arts
Council Trust Fund $0 $954,408 $1,002,128
Missouri
Humanities Council
Trust Fund $0 $954,408 $1,002,128
Missouri State
Library Networking
Fund $0 $954,408 $1,002,128
Missouri Public
Television
Broadcasting
Corporation Special
Fund $0 $954,408 $1,002,128
Missouri Historical
Preservation
Revolving Fund $0 $954,408 $1,002,128
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
None
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 assume that this proposal would have
no fiscal impact to their agency.
In a similar proposal officials of the Secretary of State's Office assume
that this proposal would result in approximately $1,000,000 in FY99 and
$1,050,000 in FY2000 of additional funds from General Revenue to the Missouri
State Library Networking Fund.
Officials of the Department of Natural Resources (DNR) assume that the DNR
Missouri Historic Preservation Revolving Fund would receive approximately
$1,000,000 in FY99 and $1,050,000 in FY2000 of additional funds from General
Revenue as a result of this proposal.
Officials of the Department of Economic Development - Missouri Arts Council
(MAC) stated that the 1997 annual estimate of income tax generated from
nonresident entertainers and professional athletes was $8,656,766. Assuming
a 5% growth rate, the fiscal impact of this proposal would be approximately
$4,544,800 and $4,772,040 in FY99 and FY2000, respectively.
Oversight assumes that the 1997 annual estimate of income tax generated from
nonresident entertainers and professional athletes was $8,656,766 and
assuming a 5% growth rate the following annual estimates would apply: 1998 -
$9,089,604; 1999 - $9,544,085; and 2000 - $10,021,289. Currently, the
Missouri Arts Council Trust Fund receives 50% of the estimated income tax.
This proposal would increase that percentage to 60%. The additional 10%
deposited in the Missouri Arts Council Trust Fund would be $954,408 in FY99
and $1,002,128 in FY2000. It would also distribute 10% each of the estimated
income tax, or $954,408 in FY99 and $1,002,128 in FY2000, to the following
funds outlined in the proposal: Missouri Humanities Council Trust Fund;
Missouri State Library Networking Fund; Missouri Public Television
Broadcasting Corporation Special Fund; and Missouri Department of Natural
Resources Missouri Historical Preservation Revolving Fund. There would be
long-term fiscal impact through FY2008 in the form of loss to General Revenue
Fund and income to the funds outlined in the proposal for a net fiscal impact
to state funds of $0.
Oversight assumes that this proposal would not have any overall effect on
Total State Revenues as it reallocates an existing revenue stream.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Loss-General Revenue Fund Transfers to:
Missouri Arts Council Trust Fund $0 ($954,408) ($1,002,128)
Missouri Humanities Council Trust Fund $0 ($954,408) ($1,002,128)
Missouri State Library Networking Fund $0 ($954,408) ($1,002,128)
Missouri Public Television Broadcasting
Corporation Special Fund $0 ($954,408) ($1,002,128)
Missouri Historical Preservation
Revolving Fund $0 ($954,408) ($1,002,128)
Total Loss-General Revenue Fund $0 ($4,772,040) ($5,010,640)
NET EFFECT TO GENERAL REVENUE FUND $0 ($4,772,040) ($5,010,640)
MISSOURI ARTS COUNCIL TRUST FUND
Income-Transfer from General Revenue Fund
Additional 10% of income tax revenues $0 $954,408 $1,002,128
MISSOURI HUMANITIES
COUNCIL TRUST FUND
Income-Transfer from General Revenue Fund
10% of income tax revenues $0 $954,408 $1,002,128
MISSOURI STATE LIBRARY
NETWORKING FUND
Income-Transfer from General Revenue Fund
10% of income tax revenues $0 $954,408 $1,002,128
MISSOURI PUBLIC TELEVISION
BROADCASTING CORPORATION
SPECIAL FUND
Income-Transfer from General Revenue Fund
10% of income tax revenues $0 $954,408 $1,002,128
MISSOURI HISTORICAL
PRESERVATION REVOLVING FUND
Income-Transfer from General Revenue Fund
10% of income tax revenues $0 $954,408 $1,002,128
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 current law, 50% of the estimated income taxes paid by nonresident
entertainers and athletes is allocated, upon appropriation, to the Missouri
Arts Council Trust Fund. This act allocates 60% to the trust fund and an
additional 10% to each of the following: The Missouri Humanities Council
Trust Fund, the Library Networks Fund, the Missouri Historical Preservation
Fund, and to support public broadcasting including public radio broadcasting.
The allocation will begin in FY 99 and extend until December 31, 2007.
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 Natural Resources
Department of Revenue
Department of Economic Development
This Fiscal Note is not an official copy and should not be quoted or cited.