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





SPONSOR: Stell DATE TYPED: 02/09/01 HB 452
SHORT TITLE: Gross Receipts Credit for Certain Hospitals SB
ANALYST: Eaton


REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY01 FY02
$ (4,000.0) $ (4,400.0) Recurring General Fund
$ 0.0 $ 0.0 Recurring Local Govt.



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates Senate Bill 191 with a technical correction.



SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of Bill



This bill provides that a hospital licensed by the Department of Health may claim a credit against gross receipts tax in an amount equal to the state share of 3.275%, leaving local government revenues harmless.



FISCAL IMPLICATIONS



The Taxation and Revenue Department (TRD) estimate that this bill will have a negative impact of the general fund of $4 million in FY02 and $4.4 million for a full year impact.



ADMINISTRATIVE IMPLICATIONS



Some computer reprogramming will be required at the Taxation and Revenue Department. The Department requests a six-month extension of the effective date of this bill which is July 1, 2001.



JBE/ar