COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 0729-03
Bill No.: Truly Agreed to and Finally Passed HCS for HB 97
Subject: County Law Enforcement: Sales Tax
Type: Original
Date: June 2, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| General Revenue | Unknown | Unknown | Unknown |
| Total Estimated
Net Effect on General Revenue Fund |
Unknown | Unknown | Unknown |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials of the Department of Revenue assume this proposal would have no administrative impact, however, should the voters approve the imposition of the sales tax, there would be revenue generated from a 1% collection fee that would be retained by the Director of Revenue and deposited into the State's General Revenue Fund. The amount of revenue is indeterminable because the rate of taxation that could be approved in unknown. The tax could not exceed one-half percent on all retail sales made in the county.
Officials of the Jefferson County Commission assume no fiscal impact.
Oversight assumes this proposal is enabling legislation and would have no fiscal impact without action of the governing body with voter approval. Oversight will show fiscal impact as though a sales tax were adopted for law enforcement purposes.
| FISCAL IMPACT - State Government | FY 2004 | FY 2005 | FY 2006 |
| GENERAL REVENUE FUND | |||
| Income to Department of Revenue | |||
| from 1% collection fee * | Unknown | Unknown | Unknown |
* Oversight assumes income to be less than $100,000 annually.
| FISCAL IMPACT - Local Government | FY 2004 | FY 2005 | FY 2006 |
| COUNTY PROSECUTOR'S SPECIAL FUND | |||
| Income to Prosecutor's Special Fund | |||
| 25% of Sales Tax Collected | Unknown | Unknown | Unknown |
| Costs to Prosecutor's Special Fund | (Unknown) | (Unknown) | (Unknown) |
| providing for office operations | |||
| Estimated Net Effect to County Prosecutor's Special Fund * | $0 | $0 | $0 |
| COUNTY LAW ENFORCEMENT SALES TAX TRUST FUND | |||
| Income to Law Enforcement Trust Fund | |||
| 75% of Sales Tax Collected | Unknown | Unknown | Unknown |
| Cost to Law Enforcement Trust Fund | (Unknown) | (Unknown) | (Unknown) |
| Providing law enforcement activities. | |||
| Estimated Net Effect to County Law Enforcement Trust Fund * | $0 | $0 | $0 |
* Oversight assumes costs would equal income resulting in an annual zero fiscal impact.
FISCAL IMPACT - Small Business
Small businesses located within a county (Jefferson County) that would receive voter approval to impose up to 0.05% sales tax for law enforcement purposes, would be impacted to the extent that they would pay and administer collection of the sales tax.
DESCRIPTION
This bill authorizes Jefferson County, upon voter approval, to impose by ordinance a retail sales tax of up to 0.5% for law enforcement services. The bill requires 25% of the sales tax revenue collected to be deposited into a special Trust Fund and to be used solely by the County Prosecuting Attorney's office. The remaining funds would only be used by the county for law enforcement purposes.
The substitute contains an emergency clause.
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
Jefferson County Commission
Mickey Wilson, CPA
Director
June 2, 2003