Intangible property-definitions.                                         06LSO-0167.C1

FISCAL NOTE

 

The fiscal impact is indeterminable.

 

The new definition of intangible personal property that this bill proposes contains specific references to types of intangible personal property that have not historically been granted.  The list also contains several items for which claims have not historically been documented nor a specific value claimed by industry.  As a result, the Department of Revenue has insufficient historical data to predict what impact the definition may have on future valuations.  To the extent that additional exemptions for intangible personal property are granted, a resulting decrease in assessed value of state-assessed property attributable to the intangible exemption can be anticipated.  This impact will fall largely on counties, municipalities, and special districts, along with the impact on the School Foundation program.  In a few instances some state-assessed taxpayers filed their annual reports in 2005 claiming intangible exemptions that were in excess of 50% of their unit value.  Assuming similar exemption claims were filed in subsequent years that could be documented, the counties, municipalities, and special districts could be expected to experience a significant revenue loss.

 

 

 

 

 

Prepared by:   Wade Hall, Dept. of Revenue Phone:   777-5235