SB 0919 - Fiscal Note

Fiscal Note - SB 0919 - Postmark rule for mailing license taxes; Dept. of Revenue to state reason for taxpayer negligence in inc. tax assessment

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2946-01

BILL NO. SB 746 with HCA #1

SUBJECT: Revenue Dept.; Taxation and Revenue-General-Income

TYPE: Corrected

DATE: April 27, 1998

# To correct bill number

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All State Funds	$0	$0	$0

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	$0 to (Unknown)	$0 to (Unknown)	$0 to (Unknown)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

SECTIONS 71.625 and 143.751 Federal Postmark to constitute proof of timely mailing

Officials of the Department of Revenue (DOR) state this legislation provides the postmark rule for licensed taxes in section 71.625, RSMo and requires the Director of Revenue to notify the taxpayer of the basis for negligence when the assessment is issued in section 143.751, RSMo. DOR staff state any modifications required by this legislation will be completed by the Department with existing staff and resources.

In a similar proposal the Director of Administration of St. Louis County assumed that there could be a loss of interest if the deadline were on a non-working day or holiday. Officials assume the amount of loss would be insignificant, and would be less than $100,000.

Oversight will show the fiscal impact to be zero $0 to (Unknown) local impact.

SECTION 1.1 Government contracts for examination of taxpayers' records.

Officials from the Department of Revenue and the Office of Administration assume this portion of the proposal would not fiscally impact their agencies.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
Loss to Certain Counties/Cities
From loss of interest	$0	$0	$0
	to	to	to
	(Unknown)*	(Unknown)*	(Unknown)*
*Loss of income would be expected to be less than $100,000 in a given year.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This bill allows the date of a federal postmark to constitute proof of timely mailing of license taxes and requires the Director of Revenue to state the reason for a finding of taxpayer negligence at the time of a proposed income tax assessment.

HCA 1 -- Disallows the state or any political subdivision from contracting for audits of a taxpayer's books or records if the contract is contingent upon the amount of tax, interest, court cost, or penalty assessed against or collected from the taxpayer.

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

Jeanne Jarrett, CPA

Director

April 27, 1998