COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3529-01

Bill No.: HB 1074

Subject: Motor Vehicles; Revenue Department; Taxation and Revenue.

Type: Original

Date: December 27, 2005



FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2007 FY 2008 FY 2009
Total Estimated

Net Effect on

General Revenue

Fund

 $0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2007 FY 2008 FY 2009
Total Estimated

Net Effect on Other

State Funds

 $0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2007 FY 2008 FY 2009
Total Estimated

Net Effect on All

Federal Funds

 $0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2007 FY 2008 FY 2009
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Revenue and Department of Social Services each assume this proposal would have no fiscal impact on their respective agencies.



In response to a similar proposal from the 2005 session (HB 449), officials with the Office of Administration - Division of Budget and Planning (BAP) assumed that the Department of Revenue currently exempts from sales tax items used to build or modify vehicles for use by individuals with disabilities, and that this proposal clarifies the exemptions. Thus, BAP assumed no impact on state revenue or its own operations.



Oversight assumes this proposal clarifies an existing sales tax exemption and, therefore, would have no impact on Total State Revenue.



FISCAL IMPACT - State Government FY 2007

(10 Mo.)

 FY 2008 FY 2009
$0 $0 $0





FISCAL IMPACT - Local Government FY 2007

(10 Mo.)

 FY 2008 FY 2009
$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 bill specifies that the purchase price for calculating sales tax of a motor vehicle excludes the cost to modify the vehicle to make it handicapped accessible.



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 Health and Senior Services

Department of Social Services

Office of Administration







Mickey Wilson, CPA

Director

December 27, 2005