COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1327S.01I Bill No.:SB 67 Subject:Tax Credits; Taxation and Revenue - Income Type:Original Date:January 27, 2025Bill Summary:This proposal modifies provisions relating to tax credits.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
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. 1327S.01I
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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 2028Local Government$0$0$0 L.R. No. 1327S.01I
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FISCAL ANALYSIS
ASSUMPTION
§§ 143.512 - Certain Penalties or Interest
Officials from the Office of Administration – Budget & Planning (B&P) assumethis proposal
would waive any addition to tax, interest, and penalties on taxes due because of tax credits being
apportioned, if the resulting tax due is paid within 60 days. B&P notes that this would only apply
to tax credits that are apportioned among taxpayers, in the event that redemptions are greater
than the amount allowed per statute or appropriation.
B&P notes that currently taxpayers are encouraged remit their full tax liability, calculated before
a tax credit, in the event that their tax credit claim is denied. However, for those taxpayers that
do not remit the full amount and end up with a tax due notice, interest and penalties are currently
levied on the overdue amount.
Based on information provided by DOR, this provision could reduce TSR by an unknown, likely
minimal, amount.
Officials from the Department of Revenue (DOR) assume this proposal would allow a taxpayer
who attempts to claim a tax credit, that is denied from a lack of available funds, and that denial
causes a balance due notice to be generated by DOR, to pay their balance due without paying a
penalty or interest for sixty days. If the balance due is not paid within sixty days, the penalty and
interest would still be owed.
DOR notes that tax credits can be denied for various reasons. Many of the state tax credit
programs have caps that are first come first serve and taxpayers can be denied if their claim is
filed later than others.
DOR has two tax credits that have caps and are apportioned credits. These credits allow people
to apply and then the amount of the credit is adjusted downward should the number of credits
claimed exceed the cap. Those two credits are the Champion for Children and Food Pantry tax
credit programs.
DOR notes the Champion for Children tax credit program already grants DOR the authority to
notify taxpayers of the apportionment of their credit and to adjust the credit downward.
Additionally, the program also allows DOR to give those taxpayers a sixty-day grace period to
make an additional payment should their account require it. This proposal would not impact the
Champion for Children program.
DOR notes that the Food Pantry program does not allow for such a grace period. At this time,
DOR would notify the taxpayer of the adjustment and then is required to assess penalties and L.R. No. 1327S.01I
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interest. It appears this proposal attempts to allow DOR to give them a grace period. DOR
assumes this would have minimal impact of less than $10,000 annually.
Oversight notes that officials from the DOR and B&P both assume this Section would have a
minimal impact on the general revenue, if any.
Oversight is unsure of how many taxpayers previously receive notice of apportionment thus
additional tax due. However, based on responses from DOR and B&P, Oversight will assume
that the total amount of interest and penalties owed, less than $10,000, is not material. Therefore,
Oversight will not show an impact in the fiscal note.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The proposed legislation appears to have no direct fiscal impact.
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. 1327S.01I
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SOURCES OF INFORMATION
Office of Administration – Budget & Planning
Department of Revenue
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 27, 2025January 27, 2025