SB 494 - This act revises the law pertaining to property tax assessment and collection and school funding.

PROPERTY TAX WITHHOLDING FOR COLLECTORS - The act increases collector's withholding from property taxes for county general revenue to the following:

- 2.5% for counties collecting less than $2 million dollars;

- 1.5% for nonfirst classification counties collecting $2 million dollars or more; and

- 1% for first classification counties and St. Louis City.

The act creates the "Tax Maintenance Fund" for funding additional operating and administrative costs of collecting taxes. Additional property tax withholding is authorized as follows:

- 1/8 of 1% for first classification, noncharter counties;

- 3% for first classification charter counties and St. Louis City;

- 1% for second classification counties or non-township third classification counties collecting less than $4 million dollars;

- 1/2 of 1% for second Classification counties or non- township third classification counties collecting more than $4 million dollars;

- 2% for township counties, collecting less than $2 million dollars;

- 1.5% for township counties collecting more than $2 million dollars but less than $2.5 million dollars;

- 1% for township counties collecting more than $2.5 million dollars.

STATE SCHOOL AID DEDUCTION FOR LOCAL PROPERTY TAXES - The Line 2 state aid deduction for property taxes is weighted at 98.5% for FY 2004 and thereafter. Hold harmless districts shall receive, beginning November 2004, an additional hold harmless payment equal to 3/4% of the line 2 deduction.

The changes to state school aid shall become effective July 1, 2003, and all other provisions become effective January 1, 2003.
JULIA SOMMER GRUS