Fiscal Note - SB 0254 - Counties May Adopt a Law Enforcement Sales Tax At a Rate of One-Eighths of One Percent
L.R. NO. 1033-01
BILL NO. Perfected SB 254
SUBJECT: Counties; Revenue Department; Taxation and Revenue-Sales
TYPE: Original
DATE: February 26, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue Unknown Unknown Unknown
Total Estimated
Net Effect on All
State Funds Unknown Unknown Unknown
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 Unknown Unknown Unknown
FISCAL ANALYSIS
ASSUMPTION
Officials of the Office of Administration assume this proposal would not
fiscally impact their agency.
Officials of the Department of Revenue (DOR) state this proposal would allow
the County Law Enforcement Sales Tax to be imposed at a rate increment of 1/8
%. DOR staff assume this proposal would not fiscally impact their agency.
Oversight assumes this proposal authorizes all counties except St. Louis
County and Jackson County to impose a local sales tax of 1/8 of one percent
for county law enforcement. If a tax is imposed, it would be effective the
first day of the second calendar quarter after the election approving the
proposal. A 1% collection fee would be retained in the General Revenue Fund.
The revenue impact is unknown since it is unknown which counties would impose
the tax and the amount of taxable sales that would be subject to the tax.
This proposal would result in an increase in Total State Revenues since
Collection Fees are included in the General Revenue Fund and general revenues
are included in the calculation of Total State Revenue.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(3 Mo.)
Income to General Revenue Fund
1% collection fee unknown unknown unknown
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(3 Mo.)
Income to County Law Enforcement
Sales Tax Trust Fund unknown unknown unknown
FISCAL IMPACT - Small Business
Small businesses in counties that impose this additional tax would be
expected to be fiscally impacted to the extent that they pay local sales tax
on taxable items. Small retail businesses would incur slight administrative
expenses for collection and payment of the tax.
DESCRIPTION
Current law gives counties, except St. Louis and Jackson, the power to adopt
a law enforcement sales tax at rates of between one-fourth of one percent to
one-half of one percent. This act authorizes an additional rate of
one-eighth of one percent.
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
Office of Administration
This Fiscal Note is not an official copy and should not be quoted or cited.