SB 0745 - Fiscal Note

Fiscal Note - SB 0745 - Tax-Foreclosed Property; Zoning Appeals; Summons

L.R. NO.  2430-02
BILL NO.  SB 745
SUBJECT:  Property:  Real and Personal, Sheriff
TYPE:     Original
DATE:     February 2, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1996             FY 1997           FY 1998
None

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1996             FY 1997           FY 1998
None

Total 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 Jackson County stated that the requirements in section
141.550, which states that anyone currently delinquent in taxes would be
ineligible to bid at a tax sale, would require the county to pre-register
potential bidders to determine their eligibility.  Officials could not
estimate the amount of cost however officials assume cost would be "modest".
Officials suggested an establishment of a pre-registration bidding fee to
offset administrative cost.

Due to the lack of response, Oversight for the purpose of this fiscal note
assumes that this proposal only changes procedure, clarifies, and would
prohibit potential bidders who own property that is affected by a delinquent
tax from bidding on certain sales of real estate under the provisions of
section 141.550, RSMo 1994.

Oversight assumes that certain county officials might be required to screen
bidders to determine if they owe delinquent taxes; however, any significant
cost would not be expected and assume that the counties current level of
appropriations would be adequate, not requiring any additional appropriation.


FISCAL IMPACT - State Government   FY 1996   FY 1997   FY 1998

                                        $0        $0        $0

FISCAL IMPACT  - Local Government  FY 1996   FY 1997   FY 1998

                                       $0*       $0*       $0*

*Cost to Certain Counties
Counties would need to screen potential bidders for delinquent tax compliance
on property that they own in the county.  Oversight assumes that any cost
related to screening would be minimal and would not require any increase in
appropriations.  Oversight assumes zero fiscal impact.


DESCRIPTION

This proposal would change the conduct of sales of tax-foreclosed property in
St. Louis City, and St. Louis, St. Charles, and Jackson Counties by:

1)  establishing hours for sale (nine o'clock a.m. to five o'clock p.m.);
2)  specifying that successful bidders would be the highest bidders on
parcels unless the bids did not cover the taxes owed and costs of sales;
3)  forbidding any person delinquent on property taxes to the county from
bidding on any parcels offered at a tax foreclosure sale; and
4)  restricting the use of redemption contracts on tax foreclosed residential
property which has been vacant for at least six months.

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

Jackson County Executive


NOT RESPONDING:  Jackson County Sheriff,  Director of Administration - St.
Louis County, St. Charles County Sheriff