SB 0621 - Fiscal Note

Fiscal Note - SB 0621 - Allows Tax Increment Financing for Housing Fund

L.R. NO.  2433-01
BILL NO.  SB 621
SUBJECT:  Housing, Taxation, Cities
TYPE:     Original
DATE:     January 8, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
None

Total 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

Total 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                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Missouri Housing Development Commission, State Tax
Commission and the Department of Economic Development indicate that there
would be no fiscal impact to their agencies.

Kansas City officials also indicate that there would be no direct fiscal
impact to the city.

Officials of the State Tax Commission indicate that local governments
participating in the tax increment financed development project may receive
less taxes than would otherwise be generated by the redevelopment area for
the duration of the project.  However, any potential fiscal impact would be
indeterminable.  For purposes of this fiscal note, Oversight assumes that
there would be a redistribution of local TIF revenues from the TIF Fund to
the Affordable Housing Fund.  However, the overall impact to local
governments would result in a net impact of $0.

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.)

There would be a redistribution
of monies from the TIF Fund to
the Affordable Housing Fund            0          0        0

DESCRIPTION

This legislation would require that local governments which authorize tax
increment financing redevelopment projects after December 31, 1996 set aside
20% of the tax increment in an  Affordable Housing Fund to be used to provide
low-interest loans and grants for affordable housing.

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

Missouri Housing Development Commission
State Tax Commission
Kansas City Manager's Office
Department of Economic Development