This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0914 - County Government: Bank Contracts, Tax Sales
L.R. NO. 3274-03
BILL NO. Truly Agreed To And Finally Passed HCS For SB 914
SUBJECT: County Officers: Duties and Procedures
TYPE: Original
DATE: May 22, 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 ($53,000) to ($5,000) to ($5,000) to
Unknown Unknown Unknown
FISCAL ANALYSIS
ASSUMPTION
Callaway County Collector assumes that there would be fiscal impact related
to the provision contained in section 52.230. Officials stated that current
equipment would be unable to provide the type of statement that would be
required. Officials assume that additional part-time FTE would be needed to
compute and enter cost onto the current tax statement. Additionally new
larger forms, envelope, and binders would be required. Officials stated that
cost would exceed $1,000 annually.
Cole County Collector assumes fiscal impact the first year with minimal
fiscal impact in following years. Officials stated that current computer
programs would need to be reprogrammed as well as retooling current computer
equipment. Larger tax statements and envelopes would be needed. Officials
could not estimate first year costs, however, stated that it would be several
thousand dollars.
Greene County Collector assumes that current computer equipment would have to
be reprogrammed. New larger tax statements, envelopes, and binders would
also be required. Officials could not estimate cost but stated that it would
be several thousand dollars.
Stone County Collector assumes that current computer equipment would need to
be reprogrammed. New larger tax statements and envelopes would be needed.
Officials could not estimate cost, however, the Collector stated that
programming cost was $90 per hour.
Marion County Collector stated that to comply with section 52.230 would
require additional programming. Cost could not be estimated.
Oversight estimates that sixty (60) counties would have to reprogram their
computers at an average one time cost of $800 per county. Aggregate cost
would be $48,000, (60 x $800). The remaining 51 counties that are not
computerized would require additional temporary part-time staff with
aggregate cost estimated to be $25,000 annually. First year, aggregate cost
would be $73,000, ($48,000 + $25,000). Since $48,000 of the $73,000 would be
first time cost, second year aggregate cost would be estimated at $25,000 as
would cost for FY99. Cost to counties would be dependant upon how collectors
interpret and comply with section 52.230. Some collectors assume that each
year of delinquent tax would be listed with interest and penalty. If one
grand total is only required then cost would be considerably less.
According to Collectors, current procedure for the annual collection of
delinquent taxes, is that delinquent tax statements are made and mailed in
March or April. Oversight assumes this proposal would eliminate this mailing
with resulting savings estimated in the aggregate to be $20,000 annually.
Officials from the Office of Missouri State Treasurer (STO) assume no fiscal
impact to their agency.
Officials from the Missouri State Tax Commission (TAX) assume no fiscal
impact to their Commission.
Officials from the Office of State Auditor (SAU) assume no state or local
fiscal impact.
Oversight assumes that counties would receive a higher rate of interest on
four year deposits than what is currently received on two year deposits.
This would generate additional income in an unknown amount.
Oversight assumes that the county collector would be required to screen
bidders at tax sales to determine if they are delinquent on any taxes.
Bidders would be required to sign an affidavit stating they owe no back
taxes. Oversight assumes costs for screening would be insignificant and
absorbed under current appropriation levels.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
$0 $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
Income to Counties
4 year depository contracts Unknown Unknown Unknown
Savings to Counties
Elimination of Mailing $20,000 $20,000 $20,000
Cost to Counties
Change in Delinquent Tax Collection ($73,000) ($25,000) ($25,000)
(Programming Cost, Materials,
Labor Cost)
ESTIMATED NET EFFECT
TO COUNTIES ($53,000) ($5,000) ($5,000)
to to to
Unknown Unknown Unknown
DESCRIPTION
This act makes the following changes in county government procedures: 1)
County Collectors in all counties except township counties and counties of
the first class with a charter form of government, would be required to
include the amount of real and tangible personal property taxes that are
delinquent at the time of mailing current tax statement. Amounts would
include any interest and all penalties associated with the delinquent taxes.
2) Allows county bank depositories to bid for a two or four year term
beginning in May 1997. Currently, these are bid on a two year term; counties
would have an option to rebid in odd numbered year.
3) Allows tax sales to be conducted at a public auction which is in or
adjacent to the courthouse. Currently the sales must be conducted at the
courthouse door;
4) No sale would be allowed to be made to any person who is delinquent on
any tax payments on any property, other than a delinquency on the property
being offered for sale as of the day of the sale;
5) At the time of the sale, bidders would be required to sign an affidavit
stating they are not delinquent on any taxes;
6) Failure to sign an affidavit, or signing a false affidavit would
invalidate the sale.
7) A purchaser of land at a delinquent land tax auction would be required to
notify, by certified mail, the person who was the recorded owner of the
property sold, 90 days prior to redemption.
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
State Treasurer's Office
State Auditor's Office
State Tax Commission
Stone County Collector
Callaway County Collector
Marion County Collector Staff
Greene County Collector