Sales tax-school fundraiser events.

03LSO-0235.L2

                                                         

FISCAL NOTE (HB0161)

 

 

	FY 2004	FY 2005	FY 2006
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Decrease:
GENERAL FUND	29,100	29,900	30,600
LOCAL SOURCES FUND	23,700	24,300	25,000

 

 

Source of revenue decrease:

 

Sales tax exemption for public school fundraising or event admission.

 

Assumptions:

 

Assume that “raising funds” means exclusively for “public schools” and does not include kindergarten through grade 12 schools that charge tuition for attendance.

 

The estimates provided in the table above are based on current sales and use taxes reported by licensed school districts, with a projected annual inflation rate of 2.5 percent.

 

Exempting school fundraisers and admissions to sporting and amusement events will result in some reduction of sales tax revenue. Since most of the fundraisers involve unlicensed parties, this amount cannot be accurately quantified. Historically, taxes collected have typically been remitted by temporary vendor licenses which may not be traceable to school functions or activities.

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(information provided by Dan Noble, Dept. of Revenue; phone 777-5220)