COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4228H.01I Bill No.:HB 1427 Subject:Taxation and Revenue - General; Taxation and Revenue - Sales and Use; Bingo;
Department of Revenue; Gambling; Department of Public Safety
Type:Original Date:February 23, 2024Bill Summary:This proposal repeals the tax imposed on the sale of bingo cards.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Bingo Proceeds for
Education($1,134,708)($1,335,491)($1,310,640)
Total Estimated Net
Effect on Other State
Funds($1,134,708)($1,335,491)($1,310,640)
Numbers within parentheses: () indicate costs or losses. L.R. No. 4228H.01I
Bill No. HB 1427
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 4228H.01I
Bill No. HB 1427
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FISCAL ANALYSIS
ASSUMPTION
§313.057 – Repeals tax on the sale of bingo cards
Officials from the Missouri Gaming Commission (MGC) state the repeal of §313.055 and
enactment of the new §313.057 eliminates the tax (two tenths of one cent) imposed on each
bingo card and progressive bingo game card sold in Missouri to be paid by a supplier. In
addition, the repeal of §313.057 and enactment of the new §313.057 eliminates the tax (2% of
the gross receipts of the retail sales value charged) imposed on pull-tab cards sold in Missouri to
be paid by a supplier.
The repeal of taxes related to bingo cards and pull-tab cards has no fiscal impact on the Missouri
Gaming Commission. The entirety of the tax revenues collected on bingo and pull-tab cards are
directed to the Missouri Bingo Proceeds for Education Fund. However, because the taxes are
collected from bingo suppliers, who are licensed by the Missouri Gaming Commission, the
repeal does affect MGC’s regulation of bingo licensees.
The repeal of §§313.055 and 313.057, RSMo, and enactment of a new §313.057 would eliminate
the tax imposed on bingo cards and pull-tab cards sold in Missouri, with an estimated total tax
loss of $1,389,184 for fiscal year 2024 ($550,705 tax loss on bingo cards and $838,479 tax loss
on pull-tabs), a total tax loss of $1,361,649 for fiscal year 2025 ($523,170 tax loss on bingo cards
and $838,479 tax loss on pull-tabs), a total tax loss of $1,335,491 for fiscal year 2026 ($497,012
tax loss on bingo cards and $838,479 tax loss on pull-tabs), a total tax loss of $1,310,640 for
fiscal year 2027 ($472,161 tax loss on bingo cards and $838,479 tax loss on pull-tabs), and a
total tax loss of $1,287,032 for fiscal year 2028 ($448,553 tax loss on bingo cards and $838,479
tax loss on pull-tabs).
MGC estimates the following total tax loss:
FY 2025FY 2026FY 2027FY 2028Bingo Paper Tax$523,170$497,012$472,161$448,553Pull-Tab Tax$838,479$838,479$838,479$838,479Total$1,361,649$1,335,491$1,310,640$1,287,032
MGC estimates the total estimated tax loss over the next 5 fiscal years is $6,683,996 ($2,491,601
tax loss on bingo cards and $4,192,395 tax loss on pull-tabs). The losses will continue into the
future in perpetuity. Due to the tax imposed on bingo cards and pull-tab cards sold in Missouri
being the only revenue streams for the Bingo Proceeds for Education Fund, then the elimination
of such taxes will result in the fund not being funded, which in turn will negatively impact
initiatives being supported by the fund. L.R. No. 4228H.01I
Bill No. HB 1427
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In determining the impact on tax revenue, the Gaming Commission used the assumption that
there will be a 5% decline per year in the sale of bingo cards based on the most recent decline
that occurred prior to the impact of COVID-19 and that there will a 0% change in pull-tab sales
based on the rise in popularity of pull-tabs with licensees and players offset by a decline in the
number of bingo licensees.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect the
estimated loss of revenue to the Bingo Proceeds for Education Fund (0289) impact in the fiscal
note.
Oversight notes, per reports from the Office of the State Treasurer, the following receipts into
the Bingo Proceeds for Education Fund (0289) over the past four fiscal years:
FY 2023 $1,452,755
FY 2022 $1,371,549
FY 2021 $ 902,629
FY 2020 $1,397,534
Oversight will reflect ten (10) months of impact in FY 2025.
Officials from the Office of Administration - Budget and Planning and the Department of
Revenue defer to the Missouri Gaming Commission for the potential fiscal impact of this
proposal.
Officials from the Department of Elementary and Secondary Education assume the proposal
will have no fiscal impact on their organization. However, the proposal may reduce state
revenue.
Oversight does not have any information to the contrary. Therefore, Oversight will reflect no
fiscal impact for this agency.
Officials from the Department of Public Safety - Missouri Highway Patrol, the Office of the
State Public Defender and the Missouri Lottery Commission each assume the proposal will
have no fiscal impact on their respective organizations. Oversight does not have any information
to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these
agencies. L.R. No. 4228H.01I
Bill No. HB 1427
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027BINGO PROCEEDS FOR
EDUCATION FUND (0289)
Loss – MGC (§313.057) - tax
elimination p.3($1,134,708)($1,335,491)($1,310,640)
ESTIMATED NET EFFECT TO
THE BINGO PROCEEDS FOR
EDUCATINO FUND (0289)($1,134,708)($1,335,491)($1,310,640)
FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027$0$0$0
FISCAL IMPACT – Small Business
A direct fiscal impact to organizations that conduct a game of bingo could expected as a result of
this proposal.
FISCAL DESCRIPTION
This bill repeals a tax of 2% on the gross receipts of retail sales paid on each pull tab card sold in
the state. The bill also repeals a tax imposed on each organization conducting a game of bingo
which annually awards at least $5000 and more than $100 in a single day
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 4228H.01I
Bill No. HB 1427
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SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Department of Elementary and Secondary Education
Department of Revenue
Department of Public Safety -
Missouri Gaming Commission
Missouri Highway Patrol
Office of the State Public Defender
Missouri Lottery Commission
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 23, 2024February 23, 2024