COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4465-01

Bill No.:          HB 2045

Subject:           Counties: Sales Tax, Agriculture, Farmland Preservation

Type:              Original

Date:               March 11, 2008

Bill Summary:            Authorizes counties to impose a sales tax to fund purchases of easements for farmland or natural land preservation.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ 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).

FISCAL ANALYSIS

ASSUMPTION

Officials of the Departments of Agriculture, and Natural Resources assume no fiscal impact to their departments.

Officials of the Department of Conservation assume no fiscal impact to the Commission.

Officials of the Department of Revenue - Sales Tax Division assume no fiscal impact.

Oversight assumes this proposal as written, does not require counties to request voter approval to impose a county-wide sales tax for the purpose of funding county purchases of easements for farmland or natural land preservation.

Oversight assumes the decision by citizen petition, or the County Commission to seek voter approval to impose a sales tax would be discretionary.

Oversight assumes that if a county were to receive voter approval to impose a sales tax for land purchases of easements for farmland and preservation, the state Department of Revenue would collect the tax and would retain a 1% collection fee which would go into the State’s General Revenue Fund. County sales tax funds would go into the “County Farmland Preservation Sales Tax Fund” and could only be used for the designated purposes.

Oversight cannot determine if any county would receive voter approval to impose the sales tax, and if they did, the amount of revenue generated by the sales tax, and the rate of taxation is indeterminable and unknown. Because this proposal is permissive Oversight assumes no state or local fiscal impact.

FISCAL IMPACT - Small Business

Small businesses within the taxing jurisdiction would have to collect, administer, and pay the additional sales tax, if one were passed by the voters.

FISCAL DESCRIPTION

The proposed legislation appears to have no fiscal impact.

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 - Sales Tax

Missouri Department of Agriculture

Missouri Department of Conservation

Department of Natural Resources

NOT RESPONDING

County Commissions of :

Boone County

Callaway County

Camden County

Cape Girardeau County

Cass County

Clay County

Cole County

Greene County

Jackson County Executive

Jefferson County

New Madrid County

NOT RESPONDING (counties continued)

Pemiscot County

Platte County

St. Charles County Executive

Taney County

Warren County

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                March 11, 2008