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SPONSOR: |
Ingle |
DATE
TYPED: |
|
HB |
|
||
SHORT
TITLE: |
Mutual
Fund Sales Commissions Gross Receipts |
SB |
639 |
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
(660.0) |
(720.0) |
Recurring |
General Fund |
|
(440.0) |
(480.0) |
Recurring |
Local Governments |
(Parenthesis ( ) Indicate Revenue Decreases)
Responses
Received From
TRD
SUMMARY
Synopsis
of Bill
Senate Bill amends
Section
FISCAL
IMPLICATIONS
TRD notes that the
fiscal impact estimate was derived from the 1997 Economic Census of Finance and
Insurance and the department’s “Analysis of Gross Receipts by Standard
Industrial Classification” (Report 80).
The estimate assumes independent contractors’ commissions from mutual
fund companies total approximately $20 million annually.
OTHER
SUBSTANTIVE ISSUES
·
Commissions for selling, or promoting the sale of any stock, bond or
security are explicitly included in the definition of gross receipts under
Section
·
This proposal
does not contain a definition of “mutual fund companies”. Black’s Law Dictionary defines a mutual fund
company as “an investment company that invests its shareholders’ money in a
(usually) diversified selection of securities.” This proposal may capture a broader spectrum
of activity than intended.
SS/yr