This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0563 - School Tax on Certain Railroad Property Distributed Locally
L.R. NO. 1820-01
BILL NO. SB 563
SUBJECT: Education: Tax on certain railroad property
TYPE: Original
DATE: January 4, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1996 FY 1997 FY 1998
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the State Tax Commission state that applying the average
operating rate in 1994 of $3.10 to the state-assessed valuation of $3.059
billion, indicates the revenues involved totalled $94.8 million in 1994.
They stated this amount would increase in subsequent years as operating tax
rates and valuations increased. Based on growth from 1988 to 1994, the State
Tax Commission estimates average growth in tax rates and valuations to be
approximately 6.2% per year.
Officials from the Department of Elementary and Secondary Education (DESE)
assume if current law continues, 52 school districts will lose $11,666,608 in
State-Assessed Railroad and Utility (SARRU) revenues. This amount was
determined by DESE by recalculating the November, 1995 state aid formula
payment with the SARRU taxes received into the Teacher's and Incidental Funds
removed as a deduction in the formula. In addition, DESE assumes that the
total SARRU revenue would be added to the formula distribution. No other
changes were assumed. The other districts of the state would gain this
amount through the formula provided that the $94,916,875 removed from the
deductions would be appropriated for the formula. The proration on line one
of the formula would have to be slightly higher than 1.0 in order to send the
$11,666,608 lost by the 52 districts to the remaining school districts. If
the proration were not slightly above 1.0, in all likelihood the General
Revenue money necessary to fund the formula would have been supplanted by
SARRU money, and the districts would have a net loss of the shortfall. DESE
states the amounts per district are only estimates and are subject to change
due to individual district circumstances. DESE states no fiscal impact
would result at the state level.
The Oversight Division assumes the 52 school districts that would have lost
$11,666,608 in SARRU revenues under current law would retain this revenue
under the proposed legislation, and the remaining districts would not receive
this amount. Since DESE's estimate is from November, 1995, the Oversight
Division has adjusted their estimates based on the State Tax Commission's
growth estimate of 6.2% annually, beginning in fiscal year 1997.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Income-School Districts
State-Assessed Railroad and Utilities
Camden R-III 95,246 101,151 107,422
Camdenton R-III 570,425 605,791 643,350
Climax Springs 39,568 42,021 44,626
Cape Girardeau 63 653,721 694,252 737,296
Nell Holcomb R-IV 62,861 66,758 70,897
Luray 33 14,717 15,629 16,598
Cole County R-II 4,656 4,945 5,252
Washington 770,638 818,417 869,159
Grundy County R-V 14,171 15,050 15,983
S. Iron County R-I 77,876 82,704 87,832
Iron County C-4 89,842 95,412 101,327
Center 58 209,976 222,994 236,820
Joplin R-VIII 680,200 722,372 767,159
Jefferson County R-VII 45,771 48,609 51,623
Crystal City 47 67,439 71,620 76,060
School of the Osage R-II 323,665 343,732 365,043
High Point R-III 31,281 33,220 35,280
Moniteau County R-V 20,583 21,859 23,214
Morgan County R-I 5,906 6,272 6,661
Risco R-II 23,518 24,976 26,524
New Madrid County R-I 409,538 434,929 461,895
Couch R-I 14,832 15,751 16,727
Cooter R-IV 32,667 34,692 36,843
Pettis County R-XII 15,011 15,942 16,930
Boncl R-X 9,986 10,605 11,262
Westran R-I 151,783 161,193 171,187
Centerville R-I 16,173 17,176 18,241
Bunker R-III 29,246 31,059 32,985
Lesterville R-IV 33,357 35,425 37,621
St. Charles R-VI 709,379 753,360 800,068
St. Charles R-V 123,206 130,845 138,957
Ferguson Florissant R-II 605,172 642,693 682,540
Pattonville R-III 560,694 595,457 632,375
Kirkwood R-VII 470,912 500,108 531,115
Lindbergh R-VIII 417,654 443,548 471,048
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Mehlville 1,036,296 1,100,546 1,168,780
Parkway C-2 1,846,064 1,960,520 2,082,072
Affton 101 214,955 228,282 242,435
Bayless 111,504 118,417 125,759
Brentwood 71,730 76,177 80,900
Clayton 206,150 218,931 232,505
Ladue School District 275,522 292,604 310,745
Maplewood-Richmond H 114,147 121,224 128,740
University City 378,060 401,500 426,393
Valley Park 67,608 71,800 76,252
Webster Groves 369,948 392,885 417,244
Scott County R-V 53,228 56,528 60,033
Kelso C-7 4,751 5,045 5,358
Bell City R-II 46,773 49,673 52,753
Newton Harris R-III 24,703 26,234 27,860
Branson R-IV 139,158 147,786 156,949
Schell City R-I 27,666 29,381 31,203
12,389,933 13,158,100 13,973,901
Loss-School Districts
SARRU-All other Districts (12,389,933)(13,158,100)(13,973,901)
ESTIMATED NET EFFECT ON
LOCAL GOVERNMENT 0 0 0
DESCRIPTION
The proposal would remove the language that requires taxes on state-assessed
properties be distributed pursuant to Section 163.031, RSMo (the foundation
formula), beginning with the 1996-97 school year.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Elementary and Secondary Education