COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1602S.01I Bill No.:SB 492 Subject:Taxation and Revenue - Sales and Use; Counties; Hospitals Type:Original Date:March 7, 2025Bill Summary:This proposal authorizes a sales tax for the operation of hospital services.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*
$0$0 or up to $10,079**$0 or up to $15,421
Total Estimated Net
Effect on General
Revenue $0
$0 or up to
$10,079**$0 or up to $15,421
*Represents the potential 1% Department of Revenue collection fee, if voters approve the sales
tax(es).
** The estimated fiscal impact for fiscal year 2027 is lesser because FY 2027 is a partial year (8
months).
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1602S.01I
Bill No. SB 492
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March 7, 2025
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028
Bates County*
$0
$0 or up to
$997,839**
$0 or up to
$1,526,694
Local Government
$0
$0 or up to
$997,839**
$0 or up to
$1,526,694
*Pending voter approval.
** The estimated fiscal impact for fiscal year 2027 is lesser because FY 2027 is a partial year (8
months). L.R. No. 1602S.01I
Bill No. SB 492
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March 7, 2025
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FISCAL ANALYSIS
ASSUMPTION
Section 67.597 - Bates County Sales Tax for Operation of Hospital
Officials from the Department of Revenue (DOR) note the legislation states any county with
more than fifteen thousand seven hundred but fewer than seventeen thousand six hundred
inhabitants with a county seat with more than four thousand two hundred and ten but fewer than
six thousand inhabitants can impose a sales tax for operation of hospital services. DOR believes
that Bates County is the one allowed the sales tax.
DOR records show that Bates County has taxable sales of:
Fiscal Year Jul-SeptOct-DecJan-MarApril- JuneTotal202026,791,278.7932,257,135.0230,899,825.2530,899,633.61120,847,872.67202128,663,803.2733,572,927.7135,825,842.1434,105,960.73132,168,533.85202229,179,421.5435,282,545.4034,385,716.6934,875,363.80133,723,047.43202331,417,103.9236,928,185.9534,641,411.7436,687,412.74139,674,114.35
The Department notes this proposal allows a one percent sales tax. Using the taxable sales and a
2% inflation rate in the future, DOR calculated the amount that Bollinger County would collect,
and the fee retained by DOR as:
Fiscal YearTotal Sales
Total
CollectionsDOR 1% Fee
Final
Collection
2026$148,223,288$1,482,233$14,822$1,467,4112027$151,187,753$1,511,878$15,119$1,496,7592028$154,211,508$1,542,115$15,421$1,526,694
DOR notes that this proposal would become effective on August 28, 2025, and the first election
this issue could be presented to the voters would be the April 2026 general municipal election.
This sales tax would become effective on the first day of the second calendar quarter after the
director of revenue receives notice of the adoption of the sales tax, which is estimated to be
October 1, 2026 (FY 2027) if adopted by the voters. Sales tax is remitted one month behind
collection of the tax, so DOR estimates an impact for FY 2027 of 8 months. L.R. No. 1602S.01I
Bill No. SB 492
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Bates County1% Tax Fiscal YearDOR 1%Local Collection2026 $0 $0 2027 (8 months)$10,079$997,8392028 $15,421$1,526,694*Effective Date 8/28/2025
If passed, this will require the Department to make changes to Revenue Premier, Rate Manager,
MyTax portal, Avalara Sales and use tax rate map, and website changes. These changes are
estimated at $1,832 per system change ($7,328).
Oversight notes DOR requests a one-time cost for website and computer updates to comply with
the proposed language; however, Oversight notes that DOR receives appropriation for routine
updates and will not show those costs in the fiscal note.
Officials from the Office of Administration - Budget and Planning (B&P) defer to Bates
County governments for the fiscal impact of this proposed 1% sales tax. The tax is intended to
support operations of hospital services. DOR’s retained collection fee will increase TSR because
DOR will be able to collect its 1% administration fee for handling the collection of the tax. B&P
defers to DOR for more specific estimates of actual collection costs.
Oversight will range the fiscal impact from $0 (not approved by voters) up to the estimates
calculated by the Department of Revenue for the fiscal impact to general revenue and local
political subdivisions. Oversight notes the tax rate shall not exceed one percent; therefore,
Oversight will reflect “up to” the 1% sales tax estimates.
FISCAL IMPACT – State GovernmentFY 2026FY 2027
(8 Mo.)
FY 2028GENERAL REVENUEPotential Revenue Gain - §67.597 -
DOR 1% Collection Fee, if approved
by voters$0
$0 or up to
$10,079
$0 or up to
$15,421
ESTIMATED NET EFFECT ON
GENERAL REVENUE$0
$0 or up to
$10,079
$0 or up to
$15,421 L.R. No. 1602S.01I
Bill No. SB 492
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March 7, 2025
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FISCAL IMPACT – Local GovernmentFY 2026FY 2027
(8 Mo.)
FY 2028BATES COUNTYPotential Revenue Gain - §67.597 -
Sales Tax for Operation of Hospital, if
approved by voters$0
$0 or up to
$997,839
$0 or up to
$1,526,694
ESTIMATED NET EFFECT ON
BATES COUNTY$0
$0 or up to
$997,839
$0 or up to
$1,526,694
FISCAL IMPACT – Small Business
Small businesses in Bates County would be impacted if the new tax is approved by voters.
FISCAL DESCRIPTION
This act authorizes Bates County to impose a sales tax not to exceed 1% for the purposes of
supporting the operations of hospital services in the county.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 7, 2025March 7, 2025