Fiscal Note - SB 0113 - Prohibits Delinquent Real Estate Owners From Bidding on Sheriff's Land Sales
L.R. NO. 0591-01
BILL NO. SB 113
SUBJECT: Property: Tax Sale; Housing
TYPE: Original
DATE: January 28, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
St. Louis City officials assume no local fiscal impact.
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.
Oversight for the purpose of this fiscal note assumes 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 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
*Cost to Certain Counties
Counties would need to screen potential bidders for delinquent taxes on
property that they own in the county. Oversight assumes that any cost
related to screening would be minimal and would not require an increase in
appropriations.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This act restricts the use of redemption contracts on tax foreclosed
residential property which has been vacant for at least six months. It would
also bar the sale of tax foreclosed property to persons who owe delinquent
property taxes on other property with the same county. Some procedures for
sheriff's sales are specified.
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
St. Louis City-Budget Division
Jackson County Executive
This Fiscal Note is not an official copy and should not be quoted or cited.