Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Wright		DATE TYPED:	03/08/99		HB	144/aHBIC
SHORT TITLE:		Gross Receipts Tax Deduction for Prosthetic Devices				SB
					ANALYST:		Eaton

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY99	FY2000	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
	$ (460.0)		Recurring	General
	$ (320.0)		Recurring	Counties/Munic

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

Department of Health (DOH)

SUMMARY

Synopsis of HBIC Amendment

The House Business and Industry Committee amendment adds language saying that "For the purposes of this section, 'prosthetic device' means an artificial substitute for a missing body part."

What this effectively does, is to remove eyeglasses and contact lenses from the definition as it relates to this bill.

Synopsis of Bill

This bill would strike language in current legislation allowing for gross receipts exemption on the sale of all prosthetic devices.

FISCAL IMPLICATIONS

HBIC Amendment

The removal of eyeglasses and contact lenses from the definition of "prosthetic devices" lowers the general fund impact significantly. The fiscal impact (negative) with the amendment is four-hundred sixty thousand dollars ($460,000) to the general fund, and three-hundred twenty thousand dollars ($320,000) to counties and municipalities.

JBE/gm