Fiscal Note - SB 0212 - Expiration Date on K. C. Transportation Sales
L.R. NO. 1058-01
BILL NO. Truly Agreed and Finally Passed SB 212
SUBJECT: Sales and Use Tax: Transportation
TYPE: Original
DATE: May 2, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue $150,045 $312,094 $162,288
Total Estimated
Net Effect on All
State Funds $150,045 $312,094 $162,288
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 $14,854,451 $30,897,258 $16,066,574
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) state this proposal extends a
tax already in effect; therefore this proposal would not fiscally impact
their agency. Tax collections from this tax in FY 96 were approximately
$27,745,000.
Officials of the Kansas City Manager's Office state the extension of the
Kansas City Transportation Sales Tax would generate approximately $30 million
in revenues for FY99 and $31.1 in FY2000. The revenues collected from this
tax are used to fund the Kansas City Area Transportation Authority and
transportation planning.
The Missouri Department of Revenue Comprehensive Annual Financial Report for
Fiscal Year Ended 6/30/94 showed tax collections of $25,372,224 for the
Kansas City Transportation Sales Tax and for Fiscal Year Ended 6/30/95 of
$26,390,169. Based on the pattern of these tax collections, Oversight has
assumed a 4% annual growth rate.
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
(6 Mo.) (6 Mo.)
Income to General Revenue Fund
1% Collection Fee $150,045 $312,094 $162,288
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND $150,045 $312,094 $162,288
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(6 Mo.) (6 Mo.)
Income to Kansas City Area
Transportation Authority 1/2% Sales Tax $14,854,451 $30,897,258 $16,066,574
ESTIMATED NET EFFECT TO
LOCAL GOVERNMENT $14,854,451 $30,897,258 $16,066,574
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that
they pay local sales tax on taxable items. The extension of the Kansas City
transportation sales tax would cause small businesses to continue to pay the
local rate for such taxable items.
DESCRIPTION
This proposal extends the sunset provision of the Kansas City transportation
sales tax from December 31, 1997, to December 31, 1999.
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
Kansas City Manager's Office
This Fiscal Note is not an official copy and should not be quoted or cited.