COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 4934-01

Bill No.: Truly Agreed to and Finally Passed HB 1688

Subject: Economic Development; Jackson County; Taxation and Revenue

Type: Original

Date: March 17, 2006




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 4 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



In response to a similar proposal from this year (SB 884), officials from the Department of Revenue and the Department of Economic Development each assumed the proposal would not fiscally impact their respective agencies.



Officials from the City of Kansas City, Jackson County and the Jackson County Sports Authority did not respond to our request for fiscal impact.



Oversight assumes this proposal could result in a savings of sales tax revenue dedicated to improvements at the Jackson County Sports Authority. The municipality's Special Allocation Fund would not see the additional revenue from the sales tax for the sports stadium as a result of this proposal. Oversight assumes the sales tax revenue (between the Sports Authority and municipalities within Jackson County) will net to zero.



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
LOCAL POLITICAL SUBDIVISIONS
Savings - Jackson County Sports Authority - from increase in sales tax not going to Special Allocation Fund with passage of bill



$0 to Unknown


$0 to Unknown


$0 to Unknown
Loss - Special Allocation Fund of municipalities within Jackson County - from increase in sales tax revenue dedicated to sports stadium improvements not being utilized for TIF project.

$0 to (Unknown)


$0 to (Unknown)


$0 to (Unknown)
ESTIMATED NET EFFECT TO LOCAL POLITICAL SUBDIVISIONS

$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 excludes any sales tax imposed by Jackson County for the purpose of sports stadium improvement from the additional 50% economic activity tax revenue allocation for tax increment financing projects.



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 Economic Development

Department of Revenue



NOT RESPONDING: Jackson County, City of Kansas City, Jackson County Sports Authority









Mickey Wilson, CPA

Director

March 17, 2006