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 0524 - Exempts from state income tax amounts received as reparation amounts for victims of Nazi persecution
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2166-01
BILL NO.: SB 524
SUBJECT: Revenue Department; Taxation and Revenue - General; Taxation and Revenue - Income
TYPE: Original
DATE: March 22, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| General Revenue | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on All State Funds |
(UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| None | |||
| 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
Department of Revenue (DOR) officials state the number of taxpayers eligible for this deduction is unknown at this time. The Division of Taxation and Collection would need one (1) temporary tax season employee ($6,067) for every 180,000 returns filed with this deduction and o ne (1) Tax Processing Technician I would be needed for every 20,000 additional errors generated from this proposal.
DOR states the proposal would require modifications to the income tax system. The Division of Taxation and Collections would be able to complete these modifications with existing staff and resources. DOR assumes that the deduction would not be tracked by DOR. DOR states that if the deduction needs to be tracked additional programming costs would be needed.
Officials from the Office of Administration state they have not been able to find any empirical basis to estimate the fiscal impact of this proposal.
Oversight assumes there would be an unknown impact on the General Revenue Fund for the exemption from state income tax for amounts received by individuals as reparation for Nazi persecution.
This proposal would result in a decrease in Total State Revenues.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| GENERAL REVENUE FUND | |||
| Loss - General Revenue Fund | |||
| Exemption for reparation amounts | (Unknown) | (Unknown) | (Unknown) |
| Cost - Department of Revenue | |||
| Operation costs | (Unknown) | (Unknown) | (Unknown) |
|
ESTIMATED NET EFFECT ON |
|||
| GENERAL REVENUE FUND | (UNKNOWN) | (UNKNOWN) | (UNKNOWN) |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Small Business | |||
| No direct fiscal impact to small businesses would be expected as a result of this proposal. | |||
DESCRIPTION
This proposal would exempt from state income taxation, and from consideration as income or assets when determining eligibility for public assistance or benefits, any amounts received as reparations or restitution for the loss of liberty or life or damage to health by victims of Nazi persecution.
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
Division of Budget and Planning
Jeanne Jarrett, CPA
Director
March 22, 1999