Fiscal Note - SB 0273 - Certain MU Property Subject to Taxation If Leased By a Private Entity
L.R. NO. 1026-02
BILL NO. SB 273
SUBJECT: Education, Higher: Taxation and Revenue
TYPE: Original
DATE: February 7, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Blind Pension Fund $2,000 $2,060 $2,122
Total Estimated
Net Effect on All
State Funds $2,000 $2,060 $2,122
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
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 $100,000 $303,000 $309,090
FISCAL ANALYSIS
ASSUMPTION
Officials from the Coordinating Board For Higher Education assume the
proposal would result in no fiscal impact to them.
Officials from the University of Missouri assume the proposal would result in
no fiscal impact to them because the property tax would be charged to the
lessees.
Officials from the State Tax Commission assume the value of the affected
property in St. Charles County, according to the assessor's office, would be
$10,255,900, and the tax rate would be $6.72. Therefore, the Tax Commission
assumes additional property taxes would be $689,197 in FY 98 and $700,000 in
subsequent years.
Officials from the Boone County Assessor's Office assume the proposal could
result in additional property tax revenue of $100,000 the first year and
$200,000 the following years from property leased by a private company from
the University of Missouri with an estimated market value of $5,000,000. The
property tax rate is $6.27.
The Oversight Division assumes that current law already removed the property
tax exemption for the recreational portion of the St. Charles County
property. Therefore, the fiscal impact section includes a portion of the St.
Charles County property and Boone County property.
The proposal would result in an increase in Total State Revenues since Blind
Pension Fund tax collections would be included in the calculation of Total
State Revenues.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
BLIND PENSION FUND
Income-Additional Property Tax $2,000 $2,060 $2,122
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
ST. CHARLES COUNTY
Income-Property Taxes
School Tax $84,400 $86,932 $86,540
County Road Fund 4,400 4,532 4,668
Other 11,200 11,536 11,882
Total Income-St. Charles County $100,000 $103,000 $103,090
BOONE COUNTY
School Tax $72,000 $144,000 $148,320
County Road Fund 800 1,595 1,643
Other 27,200 54,405 56,037
Total Income-Boone County $100,000 $200,000 $206,000
ESTIMATED NET EFFECT ON LOCAL
GOVERNMENT $100,000 $303,000 $309,090
FISCAL IMPACT - Small Business
Small businesses could be fiscally impacted if they leased property from the
University of Missouri and paid the property taxes through the leases.
DESCRIPTION
The proposal would remove the power of eminent domain from the Curators of
the University of Missouri in acquiring land and constructing facilities for
research, development and office park projects. Leased land and real
property would not be exempt from property tax.
This legislation is not federally mandated, would not duplicate any other
program, would not require additional capital improvements or rental space
and would affect total state revenues.
SOURCES OF INFORMATION
University of Missouri
Coordinating Board For Higher Education
State Tax Commission
Boone County Assessor
This Fiscal Note is not an official copy and should not be quoted or cited.