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 0426 - Extends sunset on tire disposal fee
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1855-02
BILL NO.: Truly Agreed To and Finally Passed HCS for SB 426
SUBJECT: Scrap Tire Fees
TYPE: Original
DATE: April 28, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| General Revenue | $0 | $40,519 | $84,812 |
| Solid Waste Management Fund | $0 | $974,855 | $2,035,497 |
| Total Estimated
Net Effect on All State Funds |
$0 | $1,015,374 | $2,120,309 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | $0 | $0 | $0 |
| 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
The Department of Natural Resources (DNR) assumes this proposal would extend the sunset date on the waste tire fee. The waste tire fee generates about $1.75 million dollars annually. The DNR assumes the revenue will be used to fund continued removal of illegally dumped tires, educational programs, and grants to end users.
The Department of Elementary and Secondary Education assumes they would not be fiscally impacted by this proposal.
In a response to a previous version, the Department of Revenue (DOR) assumed this fee is collected by the DOR for the DNR and is deposited 96% in the Solid Waste Management fund and 4% is the General Revenue Fund. The 1998 collections were $1,784,831. The was a 4.4 % increase over 1997. Assuming a continued increase of 4.4%, the DOR assumes income to be $1,945,351 in FY 2000, $2,030,947 in FY 2001, and $2,120,309 in FY 2002.
This proposal extend the sunset on this fee from January 1, 2001, to January 1, 2004, therefore, Oversight assumes the fiscal impact of this proposal would be increased income for the last six months of FY 2001 and for FY 2002.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (6 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Income - DNR | |||
| Waste tire fee | $0 | $40,519 | $84,812 |
| SOLID WASTE - SCRAP TIRE FUND | |||
| Income - DNR | |||
| Waste tire fee | $0 | $974,855 | $2,035,497 |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (6 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Small Business | |||
| Small businesses who are tire retailers would be required to continue collecting the $.50 per tire fee on retail sales and remit the fee to the Department of Revenue. Also, small businesses purchasing tires would continue to pay the scrap time fee. | |||
DESCRIPTION
The waste tire fee will expire on January 1, 2001. This bill extends the fee to January 1, 2004.
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 Natural Resources
Department of Elementary and Secondary Education
Department of Revenue
Jeanne Jarrett, CPA
Director
April 28, 1999