SB 0978 - Fiscal Note

Fiscal Note - SB 0978 - Allows individuals to get income tax credits for assistance to affordable housing

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 4010-01

BILL NO. SB 978

SUBJECT: Affordable Housing Tax Credits

TYPE: Original

DATE: March 10, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
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
None	$0	$0	$0
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

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Economic Development (DED) assumes this proposal would change the Affordable Housing Tax Credit to allow individuals to take this tax credit. The DED assumes the amount of tax credits that would be claimed is not known.

The Department of Revenue (DOR) assumes the number of taxpayers eligible for this credit is unknown. The DOR assumes they would need one Tax Processing Technician for every 3,680 credit taken for tracking and verification; and one Tax Processing Technician for every 20,000 errors generated in the income tax system.

Oversight assumes if additional credits are claimed, the DOR would request any additional resources needed in the normal budget process.

Oversight assumes the Affordable Housing Tax Credit is currently capped at $10 million per year. According to DED the entire $10 million of credits were certified last year and they expect the use of the credit to continue at that level. Therefore, Oversight assumes this proposal would not increase the limit but would expand the taxpayers eligible for the credit. Accordingly, there would be no additional cost to the state.

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.)
	$0	$0	$0
FISCAL IMPACT - Small Business

This proposal is not expected to impact small businesses.

DESCRIPTION

This act allows individuals to receive income tax credits when they provide affordable housing assistance. The same credits are already given to businesses under Chapter 32, RSMo.

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

Department of Economic Development

Jeanne Jarrett, CPA

Director

March 10, 1998