NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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F I S C A L I M P A C T R E P O R T





SPONSOR: Gubbels DATE TYPED: 03/07/01 HB 220/aSFC
SHORT TITLE: Space Activity Gross Receipts SB
ANALYST: Eaton


REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY01 FY02
(See Narrative) (See Narrative) Recurring General Fund
(See Narrative) (See Narrative) Recurring Local Govt.



(Parenthesis ( ) Indicate Revenue Decreases)



SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of SFC Amendment



The SFC amendment removes the temporary compensating tax deduction originally proposed in this bill.



Synopsis of Original Bill



For a five-year trial period, the bill expands the limited spaceport gross receipts tax deduction to include ground control of satellites. A temporary compensating tax deduction is also proposed as a companion. A delayed repeal of the spaceport deduction was scheduled to take effect July 1, 2001. This bill repeals the delayed repeal.



FISCAL IMPLICATIONS



The Taxation and Revenue Department (TRD) had not submitted analysis on the SFC amendment at the time of the writing of this report. Before the amendment, gross receipts tax payments from receipts for ground control of military or civilian satellites was estimated to be, at most, $100.0.



ADMINISTRATIVE IMPLICATIONS



Minimal.



JBE/ar