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 0300 - Provides for modified central tax assessment of electric generating property
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1014-05
BILL NO.: SB 300
SUBJECT: Taxation: Utilities
TYPE: Original
DATE: February 18, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| General Revenue | ($4,646) | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
($4,646) | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the State Tax Commission and the Department of Economic Development-Public Service Commission stated that the proposal would not affect their agencies, administratively.
Officials of the Department of Revenue (DOR) indicated that there would be one-time costs to establish an accounts receivable system. Since the system would be relatively small, it would be a personal computer based system. DOR costs would be $4,646 for the personal computer system and a Computer Information Technologist IV for four months to create and test system programs.
Oversight assumes that DOR would use existing personnel to write and test programs rather than hiring a person for four months.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Cost - Department of Revenue | |||
| Equipment and Expense | ($4,646) | 0 | 0 |
| NET EFFECT ON GENERAL | |||
| REVENUE FUND | ($4,646) | 0 | 0 |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Small Business | |||
| Tax Commission officials noted that while the proposal would be revenue neutral some utilities would pay more or less tax than under current assessment procedures. | |||
DESCRIPTION
This proposal would require the State Tax Commission to assess property used directly to generate and distribute electric power for years beginning on or after January 1, 2000.
The proposal provides a formula for assessment of the properties, based on 1999 allocations
DESCRIPTION (continued)
among political subdivisions and provides for adjustments to base year calculations in future years. The Tax Commission would report assessments to the Department of Revenue, which would bill and collect taxes and distribute collections to political subdivisions.
Centralized assessment would not apply to property with less than four megawatts power production capacity.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not affect Total State Revenues.
SOURCES OF INFORMATION
Department of Economic Development - Public Service Commission
Department of Revenue
State Tax Commission
Jeanne Jarrett, CPA
Director
February 18, 1999