COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4509-01
Bill No.: Perfected SB 1104
Subject: Taxation and Revenue - Income
Type: Original
Date: April 17, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue | $0 | $0 to $5,300,000 | $0 to $5,300,000 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 to $5,300,000 | $0 to $5,300,000 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Revenue (DOR) assume this legislation prevents interest on refunds due to tax credit carrybacks. This will have no administrative impact to DOR. However, DOR estimates that this proposal will result in interest savings of up to $5.3 million per year (an estimated $2.2 million for individual income tax and $3.1 million for corporation income tax.)
Department of Economic Development (DED) officials state this bill should have no impact on DED. The bill prevents carried back tax credits from accruing interest except from the date they were authorized and forward.
This legislation could increase Total State Revenues.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE FUND | |||
| Income - General Revenue Fund | |||
| Elimination of interest on carrybacks of tax credits |
$0 |
$0 to $5,300,000 | $0 to $5,300,000 |
| TOTAL ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
$0 |
$0 to $5,300,000 | $0 to $5,300,000 |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small businesses with a tax credit would not receive interest on amount of carryback.
DESCRIPTION
This act prohibits a carried-back tax credit from accruing interest prior to the close of the taxable year in which the credit was authorized.
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
Mickey Wilson, CPA
Acting Director
April 17, 2002