SB 0516 - Fiscal Note

Fiscal Note - SB 0516 - 4-Year Reassessment, 10% Sales Ratio Cushion For Prop. Tax

L.R. NO.  2185-01
BILL NO.  SB 516
SUBJECT:  Property Tax
TYPE:     Original
DATE:     January 8, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Blind Pension                   $0                  $0        ($300,000)
 Estimated
Net Effect on All
State Funds                     $0                  $0        ($300,000)

                   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 1997             FY 1998           FY 1999
Local Government                $0                  $0         (Unknown)



                              FISCAL ANALYSIS

ASSUMPTION

Officials at the Department of Elementary and Secondary Education assume that
changing the equivalent sales ratio would result in a redistribution of funds
through the Foundation Program.

Officials at the State Tax Commission assume the proposal would not directly
affect their budget. They did note that changing the assessment period from
two years to four years would cause local governments (and the Blind Pension
Fund) to tax part of natural growth every four years instead of every two
years and that state payments to counties to carry out approved assessment
plans could be lower for four year plans than for two year plans. Oversight
assumes that state payments for approved assessment maintenance plans would
be adjusted yearly in the normal budget process.

Oversight estimates decreased income to the Blind Pension Fund would exceed
$100,000 per year for FY's 1999, 2000 and 2001 since the tax rate for that
Fund is not subject to tax rate ceiling rollbacks. (E.g. If the latest
reassessment had not taken place, the Fund would have received approximately
$300,000 less than it received.)

The Cape Girardeau County Assessor stated the proposal would not cause that
office to request any additional resources.

The Jackson County and St. Louis City Assessors have not yet responded to
this proposal.


FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)
BLIND PENSION FUND

Loss - Decreased Collections           0         0 ($300,000)

FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)
POLITICAL SUBDIVISIONS

Loss-Decreased Collections
   Since tax collections are subject to revenue ceiling restraints, it is not
possible to estimate the   magnitude of losses to political subdivisions.

DESCRIPTION

The proposal would 1) beginning January 1, 1997, replace the current two-year
real property reassessment cycle with a four-year cycle, and 2) require the
State Tax Commission to certify equivalent sales ratios for each school
district higher than thirty percent (currently thirty-one and two-thirds) at
thirty-three and one-third percent, on and after January 1, 1997.

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
State Tax Commission

Not Responding: Jackson County and St. Louis City Assessors