SB 0877 - Fiscal Note

Fiscal Note - SB 0877 - Restricts sales of tax-foreclosed property in two situations

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2888-01

BILL NO. SB 877

SUBJECT: Taxation and Revenue-Property: Delinquent Tax Sales

TYPE: Original

DATE: February 17, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

St. Louis City officials, in a response to a similar proposal, assumed no local fiscal impact.

Officials from Jackson County stated, in a response to a similar proposal, 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.

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 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0

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 DESCRIPTION (continued)

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. This legislation would not affect Total State Revenue.

SOURCES OF INFORMATION

St. Louis City-Budget Division

Jackson County Executive

Jeanne Jarrett, CPA

Director

February 17, 1998