04/22/1997 01:48 PM House FIN

  SENATE BILL NO. 49                                                           
                                                                               
       "An Act  repealing certain filing statements  and bonds                 
       for enforcement  and collection  of  certain taxes  and                 
       license  fees;  relating  to  service   of  process  on                 
       nonresident taxpayers; and  providing for an  effective                 
       date."                                                                  
                                                                               
  BOB BARTHOLOMEW,  DEPUTY DIRECTOR, INCOME  AND EXCISE  AUDIT                 
  DIVISION, DEPARTMENT OF  REVENUE testified in support  of SB
.   He noted that the legislation would repeal regulations                 
  that  require  nonresident   corporations  to  file  a   tax                 
  affidavit with the  Department of Revenue and  obtain a bond                 
  to  secure  potential  tax  liabilities.   The  program  was                 
  established  in 1955.    He  noted  that the  Department  of                 
  Revenue has not claimed anything against the bond.  He noted                 
  that there has  been no opposition  to the legislation.   He                 
  observed  that  the  legislation  will  help  offset  budget                 
  reductions to the Department  of Revenue.  He noted  that it                 
  takes  approximately  800  hours  of  staff time  and  three                 
  positions to enforce  the regulations.   He referred to  the                 
  Department  of  Revenue's fiscal  note.   The  Department is                 
  requesting  that  the  fiscal  note  be  zero to  allow  the                 
  resources to be reallocated to compliance.                                   
                                                                               
  Representative  Mulder  pointed  out  that  the  State  does                 
  receive revenues from  the program.   He  observed that  the                 
  fiscal   note  states  that   new  revenues  from  increased                 
  compliance would offset the lose of interest income.                         
                                                                               
  Mr.  Bartholomew reiterated  that  the  Department raises  a                 
  significant amount of money through compliance.                              
                                                                               
  Co-Chair Hanley MOVED to report SB  49 out of Committee with                 
  individual recommendations and  with the accompanying fiscal                 
  notes.  There being NO OBJECTION, it was so ordered.                         
                                                                               
                                2                                              
                                                                               
                                                                               
  SB  49  was  reported out  of  Committee  with  a "do  pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Revenue, and with a zero fiscal note by the Department of                 
  Commerce and Economic Development, both dated 1/15/97.