Fiscal Note

SB0036S01 - Sales and Use Tax Amendments

State Impact:
Enactment of this bill increases taxes on certain companies and decreases taxes on other companies. As a result, revenue to the General Fund could increase by $28,200 annually and revenue to the Critical Highway Needs Fund and the Transportation Investment Fund could increase by $300 annually.

Funding SourceFY 2009
Approp.		FY 2010
Approp.		FY 2011
Approp.		FY 2009
Revenue		FY 2010
Revenue		FY 2011
Revenue
General Fund$0$0$0$0$28,200$28,200
Transportation Fund Restricted$0$0$0$0$300$300
   Total
$0
$0
$0
$0
$28,500
$28,500

Individual, Business and/or Local Impact:
This bill affects different industries. Certain businesses that purchase equipment exempt from sales tax, but do not use the equipment in the state will be required to pay sales tax. These businesses will experience an increase in sales tax of $65,000 in FY 2010 and $67,000 in FY 2011. Telecommunications companies that purchase plastic used in making certain calling cards will be subject to use tax. The expected amount is $1,200. Individuals that recharge a prepaid calling card for exclusive international or interstate calls will be exempt from sales tax. The expected amount of this exemption is $38,000 in FY 2010 and $40,000 in FY 2011. Local governments could experience increased revenue of $12,000 annually.

2/9/2009, 2:43:54 PM, Lead Analyst: Young, T.Office of the Legislative Fiscal Analyst