SJR 038 - Fiscal Note

Fiscal Note - SJR 038 - Cert. Land May Receive a Maximum 25 Yr. Prop. Tax Abatement

L.R. NO.  3532-01
BILL NO.  SJR 38
SUBJECT:  Constitutional Amendment: Property Tax
TYPE:     Original
DATE:     March 4, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue          ($18,000)

Total Estimated
Net Effect on All
State Funds              ($18,000)                  $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             Unknown           Unknown


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Revenue, the Department of Economic
Development and the State Tax Commission stated that this proposal would not
affect their agencies, administratively.

The twenty-five year limitation on tax relief for certain property would
result in additional taxes for those political subdivisions containing
tax-relieved property which reaches the end of the twenty-five year period.
It is not known which projects in which political subdivisions would be
affected. (It is also not known whether the twenty-five year limit on tax
relief would have any effect on future redevelopment projects.)

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

GENERAL REVENUE FUND

Cost to General Revenue Fund
  Secretary of State
  Newspaper Advertisements     ($18,000)

FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999

POLITICAL SUBDIVISIONS

Income-Property tax from Tax-abated
Property                              $0   Unknown   Unknown

DESCRIPTION

This proposal would limit the total period of tax abatement on redevelopment
of obsolete, blighted or decadent areas to twenty-five years. Currently,
multiple twenty-five year tax relief periods are allowed.

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 Economic Development
Department of Revenue
Secretary of State
State Tax Commission