COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4629-01
Bill No.: HB 2467
Subject: Revenue Dept.; Taxation and Revenue - Income
Type: Original
Date: April 9, 2008
Bill Summary: Would change the individual income tax rates.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
General Revenue |
($323,000,000) |
($323,000,000) |
($323,000,000) |
|
|
|
|
Total Estimated Net Effect on General Revenue Fund |
($323,000,000) |
($323,000,000) |
($323,000,000) |
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
|||
FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
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 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
|||
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 |
$0 |
$0 |
$0 |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Revenue (DOR) assume this proposal would not have a fiscal impact on their organization. DOR officials also provided an estimate of the IT cost to implement the proposal.
Officials from the Office of Administration, Information Technology Services Division (ITSD/DOR) assume this proposal would be accomplished with existing resources; however, if priorities shift, additional FTE/overtime would be needed. ITSD/DOR officials estimated that implementing the proposal would require two FTE existing CIT III for two months at a total cost of $16,744.
Officials from the University of Missouri, Economic Policy Analysis and Research Center (EPARC) assume this proposal would change the rate paid by individual income tax filers at the highest income bracket. Specifically, filers whose taxable income is over $8,000 would see their tax rate fall from 6 percent to 5.5 percent. EPARC officials projected a revenue reduction of $323 million in individual income taxes if this proposal was implemented.
Oversight notes that the proposal would change the individual income tax rates effective January 1, 2008 and the first fiscal impact would be in FY 2009.
Officials from the Office of Administration, Division of Budget and Planning did not respond to our request for information.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
GENERAL REVENUE FUND |
|
|
|
|
|
|
|
Revenue reduction - tax rate reduction |
($323,000,000) |
($323,000,000) |
($323,000,000) |
|
|
|
|
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
($323,000,000) |
($323,000,000) |
($323,000,000) |
FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
|
|
|
|
|
$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This proposal would change the individual income tax rates.
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
University of Missouri
Economic Policy Analysis and Research Center
NOT RESPONDING
Office of Administration
Division of Budget and Planning
Mickey Wilson, CPA
Director
April 9, 2008