SB 0800 - Fiscal Note

Fiscal Note - SB 0800 - Land trustees may convey property for housing purposes at less than 2/3 value

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2942-06

BILL NO. HCS for SB 800

SUBJECT: Taxation and Revenue-Property, Real and Personal

TYPE: Original

DATE: April 23, 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

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

St. Louis City officials assumed, in response to a proposal from last session concerning bidding on property for sale at tax sales, 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.

Tax Commission officials noted that drainage and levee district taxes are not large revenue producers and do not apply to all counties. Oversight assumes that additional fees on delinquent taxes would be minimal for any given subdivision

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

Small businesses in drainage or levee districts could be affected by this proposal.

DESCRIPTION

This proposal would:

1) restrict the use of redemption contracts on tax foreclosed residential property which has been vacant for at least six months;

2) bar the sale of tax foreclosed property to persons who owe delinquent property taxes on other property with the same county;

3) specify some procedures for sheriff's sales;

4) require any person holding a recorded claim upon real estate purchased at a third offering tax auction who received proper notice to redeem the property at least 90 days prior to the date when a purchaser authorized to acquire the deed or the holder of interest in the property would be prohibited from redeeming the property;

6) require persons registering a vehicle or trailer to present a tax receipt for the year that immediately precedes the year the registration is due; and,

7) increase fees on delinquent levee and drainage district taxes.

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

Department of Revenue

State Tax Commission

Jeanne Jarrett, CPA

Director

April 23, 1998