Manufacturing tax exemption.

11LSO-0221.L1

FISCAL NOTE

This bill extends the existing sales and use tax exemption on manufacturing equipment for another 5 years, until December 31, 2016. There is no additional non-administrative fiscal impact outside of the existing exemption. 

In tracking the current sales and use tax exemption on manufacturing equipment, the Department of Revenue has seen wild fluctuations in the use of the exemption.  The average revenue decrease, based on the statewide average over the last six reporting years, is $10,303,000 annually in taxes foregone from the exemption.

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 Employment

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

(Information provided by Dan Noble, Dept. of Revenue; 777-5220:

Wendy Tyson, Dept. of Employment; (307) 235-3201)