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 0509 - Authorizes state income tax deduction for contributions of qualified commodities to charitable organizations
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 2167-01
BILL NO.: SB 509
SUBJECT: Agriculture and Animals; Revenue Department; Taxation and Revenue - General; Taxation and Revenue - Income
TYPE: Original
DATE: March 17, 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
Officials from the Department of Health and the Department of Agriculture assume this proposal would not fiscally impact their agencies.
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 one (1) Tax Processing Technician I would be needed for every 20,000 income tax errors generated from this proposal.
DOR states the proposal would require modifications to the income tax system. The Division of Taxation and Collections states they would be able to complete these modifications with existing staff and resources. However, DOR assumes that the deduction would not be tracked by DOR. DOR states that is the deduction needs to be tracked additional programming costs would be needed.
Officials from the Office of Administration (COA) 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 income tax deduction for contributions of qualified commodities to charitable organizations.
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 | |||
| Deduction of commodities contributions | (Unknown) | (Unknown) | (Unknown) |
| Cost - Department of Revenue | |||
| Reprogramming 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 | |||
| Small businesses would be expected to be fiscally impacted to the extent that any qualified commodity contributions the small businesses would make to a 501 (c)c(3) organization would allow a tax credit against any state tax liability. | |||
DESCRIPTION
This proposal would authorize a state income tax deduction for taxpayers who contribute commodities, as listed by the Secretary of the U.S. Department of Agriculture, to section 503(c)(3) organizations. The deduction would be equal to the parity price of the commodities, up to a total of $10,000 per taxpayer per taxable year.
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
Department of Agriculture
Department of Health
Jeanne Jarrett, CPA
Director
March 17, 1999