SB 0861 - Fiscal Note

Fiscal Note - SB 0861 - Modifies law governing transportation development districts

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3506-01

BILL NO. Truly Agreed To And Finally Passed SB 861

SUBJECT: Transportation: Taxation and Revenue

TYPE: Original

DATE: April 28, 1998

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FISCAL SUMMARY

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

*This proposal is permissive.

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages. FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Transportation (DHT) and the State Treasurer's Office (STO) assume no fiscal impact.

Officials from the Department of Revenue (DOR) assume the fiscal impact of this proposal would be minimal. The additional administrative duties of collection could be absorbed by current appropriations.

The number of additional local sales taxes that would be imposed is unknown. Therefore, the amount of revenue that would be collected and the corresponding 1% collection fee that would be deposited to the General Revenue Fund is unknown.

Oversight assumes this proposal is permissive and would require approval by the voters to implement the sales tax. However, if such sales tax is approved and implemented each transportation district that approves this sales tax would realize an increase in total revenue. Since this tax increase is subject to voter approval, Oversight has shown the potential for increased income and costs as $0 to Unknown.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
GENERAL REVENUE FUND
Income to Department of Revenue
1% Collection Fee	$0 to	$0 to	$0 to
	Unknown	Unknown	Unknown
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
TRANSPORTATION DEVELOPMENT
DISTRICT SALES TAX FUND
Income to Transportation Districts
Sales Tax	$0 to	$0 to	$0 to
	Unknown	Unknown	Unknown
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
(continued)	(10 Mo.)
Costs to Transportation Districts
Transportation Development	$0 to	$0 to	$0 to
	(Unknown)	(Unknown)	(Unknown)
ESTIMATED NET EFFECT TO
LOCAL GOVERNMENTS
TRANSPORTATION
DEVELOPMENT DISTRICTS*	$0	$0	$0
*Oversight assumes cost would not exceed income resulting in either a zero or positive fund balance annually.

FISCAL IMPACT - Small Business

Small businesses located within a transportation development district would be fiscally impacted due to costs related to payment and collection of the sales tax.

DESCRIPTION

This act makes two changes to the law on transportation development districts.

SALES TAX- The act sets up an alternate sales tax collection method. The sales tax may be imposed in an area made up of a city, county, or combination thereof. The tax would be collected by the Department of Revenue (DOR) instead of by the District itself, and the DOR would remit the funds to the district, less a 1% charge.

MORTGAGES- Districts are prohibited from mortgaging any property acquired through eminent domain. They may not mortgage any property received from a state agency without that agency's consent.

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 Transportation

Department of Revenue

State Treasurer's Office

Jeanne Jarrett, CPA

Director

April 28, 1998