COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3766-01
Bill No.: HB 1548
Subject: Taxation and Revenue - Sales and Use; Revenue Dept.
Type: Original
Date: March 12, 2008
Bill Summary: Would authorize a sales and use tax exemption for purchases of equipment, machinery, materials, supplies, fixtures, and shoes used in the sport of bowling.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
General Revenue |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
|
|
|
|
Total Estimated Net Effect on General Revenue Fund |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
School District Trust |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
Conservation Commission |
(Less than $100,000) |
(Less than $100,000) |
(Less than $100,000) |
Parks, and Soil and Water |
(Less than $100,000) |
(Less than $100,000) |
(Less than $100,000) |
Total Estimated Net Effect on Other State Funds |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
Total Estimated Net Effect on FTE |
0 |
0 |
0 |
☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).
☒ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).
ESTIMATED NET EFFECT ON LOCAL FUNDS |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development assume this proposal would have no fiscal impact on their organization.
Officials from the Office of Administration, Division of Budget and Planning (BAP) assume this proposal would not result in additional costs or savings to their organization. BAP officials assume the proposal would exempt purchases of equipment, machinery, materials, supplies, fixtures, and shoes from sales tax. The proposal would result in an unknown loss of revenues. BAP deferred to the Department of Revenue for information that would help with a more specific estimate of the fiscal cost.
Officials from the Department of Revenue (DOR) assume this proposal would have no fiscal impact on their organization. DOR officials stated that taxable sales by billiard and bowling establishments in 2006 was $77.5 million, but were not able to provide information regarding taxable purchases made by bowling establishments.
Oversight has researched the available information and found that there are approximately 170 bowling centers in Missouri. Oversight was not able to determine the amount of annual expenditures on machinery and equipment, or materials and supplies for a bowling center. Oversight notes that taxable sales of $10 million would be required to provide $100,000 or more in revenue to the state General Revenue Fund, the School District Trust Fund, and to local governments. Sales of $100 million would be required to provide $100,000 or more in revenue to the Conservation Commission Fund and to the Parks, and Soils and Water Funds.
Oversight will assume for the purposes of this fiscal note that the amount of sales tax revenue reductions would be greater than $100,000 for the state General Revenue Fund, the School District Trust Fund, and to local governments, and less than $100,000 to the Conservation Commission Fund and to the Parks, and Soils and Water Funds.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
GENERAL REVENUE FUND |
|
|
|
|
|
|
|
Revenue reduction - sales tax exemption |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
|
|
|
|
SCHOOL DISTRICT TRUST FUND |
|
|
|
|
|
|
|
Revenue reduction - sales tax exemption |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON SCHOOL DISTRICT TRUST FUND |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
|
|
|
|
CONSERVATION COMMISSION FUND |
|
|
|
|
|
|
|
Revenue reduction - sales tax exemption |
(Less than $100,000) |
(Less than $100,000) |
(Less than $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON CONSERVATION COMMISSION FUND |
(Less than $100,000) |
(Less than $100,000) |
(Less than $100,000) |
|
|
|
|
PARKS, AND SOIL AND WATER FUNDS |
|
|
|
|
|
|
|
Revenue reduction - sales tax exemption |
(Less than $100,000) |
(Less than $100,000) |
(Less than $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON PARKS, AND SOIL AND WATER FUNDS |
(Less than $100,000) |
(Less than $100,000) |
(Less than $100,000) |
FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
LOCAL GOVERNMENTS |
|
|
|
|
|
|
|
Revenue reduction - sales tax exemption |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
|
|
|
|
ESTIMATED NET EFFECT ON LOCAL GOVERNMENTS |
(More than $100,000) |
(More than $100,000) |
(More than $100,000) |
FISCAL IMPACT - Small Business
This proposal could have a fiscal impact on small businesses related to bowling.
FISCAL DESCRIPTION
This proposal would authorize a sales and use tax exemption for purchases of equipment, machinery, materials, supplies, fixtures, and shoes used in the sport of bowling.
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
Office of Administration
Division of Budget and Planning
Department of Economic Development
Department of Revenue
Mickey Wilson, CPA
Director
March 12, 2008