This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0484 - Changes eligibility date for certain tax increment financing benefits
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2309-01
BILL NO. SB 484
SUBJECT: Economic Development: Tax Increment Financing
TYPE: Original
DATE: December 12, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 Blind Pension
(Unknown)
(Unknown)
(Unknown)
Total Estimated
(Unknown)
(Unknown)
(Unknown)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | (Unknown) | (Unknown) | (Unknown) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Economic Development (DED) and the State Tax Commission (TAX) stated the proposal would not affect their agencies, administratively.
The proposal would allow more municipalities to include blind pension fund and merchant's and manufacturer's inventory replacement taxes in tax increment financing. DED officials can not readily say which cities or projects would be affected by this proposal.
Oversight notes that the proposal could reduce income to the state's Blind Pension Fund and to affected political subdivisions which benefit from the Merchant's and Manufacturer's Replacement Tax.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| BLIND PENSION FUND | |||
| Loss to Blind Pension Fund | |||
| Taxes from Tax Increment Finance Districts | (Unknown) | (Unknown) | (Unknown) |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| POLITICAL SUBDIVISIONS | |||
| Loss of Merchant's and Manufacturer's Tax | (Unknown) | (Unknown) | (Unknown) |
FISCAL IMPACT - Small Business
No direct fiscal effect on small businesses would be expected due to this proposal.
DESCRIPTION
This proposal would allow Blind Pension and Merchant's and Manufacturer's taxes to be included in tax increment financing in redevelopment areas in cities which adopted tax increment financing after August 13, 1982 and before January 1, 1998. Under current law the appropriate dates are April 1, 1990 and January 1, 1998.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation could reduce Total State Revenue.
SOURCES OF INFORMATION
Department of Economic Development
State Tax Commission
Jeanne Jarrett, CPA
Director
December 12, 1997