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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
ORIGINAL DATE
LAST UPDATED
2/6/06
HB
SHORT TITLE Funeral Service & Merchandise Gross Receipts
SB 704
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
FY08
(216.0)
Recurring General Fund
(144.0)
Recurring Local Govern-
ments
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Senate Bill 704 creates a gross receipts tax deduction for receipts from selling funeral services
and merchandise. The deduction will be limited to $10 thousand per month for receipts from any
single buyer.
Funeral services are defined as post-death activities such as committal, graveside or memorial
services, embalming, cremation, funeral service advising or counseling, and final disposition.
Funeral merchandise is defined as personal property sold in connection with transportation,
funeralization, or disposition, including urns and coffins.
The effective date of these provisions is July 1, 2006.
FISCAL IMPLICATIONS
According to TRD, total taxable gross receipts for funeral services and merchandise was about
$6 million in FY05. Taxed at an average of 6 percent, TRD believes the bill will reduce gross
receipts tax revenue by $360 thousand per year. About 60 percent of this revenue reduction will