Excise tax-vendor compensation.

09LSO-0144.C1

FISCAL NOTE

	FY 2010	FY 2011	FY 2012
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue (Decrease):
GENERAL FUND	(3,200,000)	(3,200,000)	(3,200,000)
LOCAL SOURCES FUND	(2,900,000)	(2,900,000)	(2,900,000)

Source of revenue decrease:

Credit to vendors (including direct payors) equal to 1% of the sales and use tax due, up to $10,000 in a calendar year

Assumptions:

The above estimate is based on FY 2008 sales and use tax vendor collections. It is assumed that the impact will be split 53% General Fund and 47% local governments.

The above estimate reflects that the amount of the credit will remain constant, due to the $10,000 per year discount cap. The total amount of the 1% tax credit could increase, as taxable sales increase for those vendors below the $10,000 cap. However, the amount of this potential increase in the credit cannot be estimated.

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Revenue

Prepared by:   Dean Temte, LSO    Phone: 777-7881

(Information provided by Dan Noble, DOR; 777-5220)