SJR 034 - Fiscal Note

Fiscal Note - SJR 034 - Allows Site-Value Property Tax Option

L.R. NO.  3110-01
BILL NO.  SJR 34
SUBJECT:  Constitutional Amendment: Property Tax
TYPE:     Original
DATE:     February 6, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
General Revenue          ($41,200)                  $0                $0

Total Estimated
Net Effect on All
State Funds              ($41,200)                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999


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 State Tax Commission noted that the proposal would authorize
certain actions by the General Assembly which would authorize certain actions
by voters of certain political subdivisions which could affect the workload
of the Commission and could affect property tax collections; however,
estimates of effects can not be made until the enabling legislation for the
proposal is available for analysis.

Advertisement costs for the proposal would be $1,220 per newspaper column
inch for the text of the proposal, the introduction, title, fiscal note
summary, and affidavit.  The proposal would be on the ballot for the November
1996 general election.

FISCAL IMPACT - State Government     FY 1997   FY 1998   FY 1999

Cost to General Revenue Fund
  Secretary of State
  Newspaper Advertisements        ($ 41,200)        $0        $0

FISCAL IMPACT - Local Government     FY 1997   FY 1998   FY 1999

                                          $0        $0        $0

DESCRIPTION

This proposal would allow the General Assembly to classify real property
based on land, exclusive of buildings or structures on the land, and
buildings and structures upon land in any municipality and in the
unincorporated areas of first and second class counties. Mineral lands and
mineral rights and buildings and structures used in processing mineral
production would be exempt from new classification.

The classification would not become effective until adopted by the voters of
a political subdivision and tax rates could be adjusted to produce the same
amount of revenue, plus inflationary growth, generated a class or subclass of
property in the tax year before the new classifications would take effect.

SOURCES OF INFORMATION

Secretary of State
State Tax Commission