This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0379 - Authorizes the Designation of an Enterprise Zone in Clinton 

L.R. NO.  1553-01
BILL NO.  SB 379
SUBJECT:  Enterprise Zone in Clinton
TYPE:     Original
DATE:     February 24, 1997



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
All State Funds          (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                            $0                  $0                $0

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

The Department of Revenue assumes no fiscal impact from this proposal.  The
Department of Economic Development assumes any loss of tax revenue as a
result of the enterprise zone tax credit would be more than offset by
increased economic activity in the area.

Oversight assumes the actual credits claimed depend on future participation
by the affected taxpayers.  Accordingly, the actual loss of revenue to the
state and local governments is unknown.


FISCAL IMPACT - State Government               FY 1998   FY 1999   FY 2000
                                              (10 Mo.)
ALL STATE FUNDS

Loss - reduced tax revenues due to
           expansion of tax credits          (Unknown) (Unknown) (Unknown)


FISCAL IMPACT - Local Government               FY 1998   FY 1999   FY 2000
                                              (10 Mo.)

Loss - reduced property tax revenue and
       distributions of state tax revenue    (Unknown) (Unknown) (Unknown)


FISCAL IMPACT - Small Business

This proposal may have an economic effect on small businesses locating within
the new enterprise zone by providing tax credits to businesses investing in
the area.


DESCRIPTION

This act authorizes the designation of an enterprise zone in the City of
Clinton.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.  Any tax credits claimed as a result of this proposal would reduce
Total State Revenues.


SOURCES OF INFORMATION

Department of Economic Development
Department of Revenue