The Office of Prosecution Services responded to previous similar legislation that any costs could likely be absorbed with existing resources. Any carried-forward deductions would impact revenues in FY 2005, as they would be filed in March, 2005. Officials with the Department of Revenue assume no administrative impact would result from the passage of this proposal, based on an assumption that the number of tax credits filed would not significantly increase. The Department assumes there would be a revenue loss to the state should this legislation pass along with a repeal of the franchise tax. The Office defers to the Department of Insurance for an estimate of the amount.
Oversight notes that the proposal has the potential to result in a loss of revenue to the state.
By allowing tax credits to be passed through Missouri S corporation banks to their shareholders, the proposal will result in some tax credits being utilized in a shorter time frame. Also, by providing that banks will continue to be allowed to claim the amount they would have paid in franchise tax as a credit against their bank tax liability if legislation is enacted which eliminates the franchise tax, the bill creates the potential for a large revenue loss. Oversight assumes this proposal would result in a cost to General Revenue if any pending legislation repealing the franchise tax is enacted along with this proposal. Officials with the City of Saint Louis indicate the provision exempting financial institutions managing property tax payments from escrow accounts from any installment property tax payment requirements should have no fiscal impact. Oversight assumes little or no fiscal impact, as the exemption would be only from the county's payment schedule.