SB 356 - This act revises the law pertaining to property tax assessment, collection and school funding.

PROPERTY TAX WITHHOLDING FOR COLLECTORS - The act increases collector's withholding from property taxes for county general revenue to the following: 2.5% for counties collecting less than $2 M; 1.5% for non-first classification counties collecting $2 M or more; and 1% for first classification counties and St. Louis City.

The act creates the "Tax Maintenance Fund" for funding additional operating and administrative costs of collecting taxes. Additional property tax withholding as follows: 1/4% for first classification, non-charter counties; 1/2% for second, third and fourth classification counties; and 1% for township counties.

Counties which become first classification on or after Jan. 1, 1999 shall continue to withhold 1/2% until the amount collected at 1/4% equals or exceed the amount collected at 1/2% the last year prior to becoming first classification counties.

PROPERTY LISTS AND ASSESSMENT ON OMITTED PROPERTY - The act requires the assessor to create a list of taxable personal property where no such list exists. Current law refers to a list of all taxable property. The act also requires the assessor to assess and cause taxes to be imposed on omitted taxable personal property for the current year and for the prior year if the property was then subject to tax, but omitted.

PROPERTY TAX WITHHOLDING FOR ASSESSORS - Increases property tax withholding for funding assessments to the following levels: 5/8% for first and second classification counties; and 1 1/4% for third and fourth classification counties. Counties which become second classification on or after Sept. 28, 1987, shall continue to withhold 1 1/4%.

STATE AID TO ASSESSORS - Per parcel state aid to assessors shall be increased to $7 per parcel for 2000 and shall increase by 3% per year thereafter. The state match is increased from 50% to 60%. State aid shall be reduced by the amount of the 25% collection increase under Sections 137.720 or 137.722, RSMo, if the county reduces the amount of county general revenue appropriated to the assessment fund to less than the average amount appropriated for the previous three years.

EQUALIZATION OF ASSESSMENTS - The act increases the assessment tolerance from 5% to 7% for equalization of assessment and for penalties to the assessor. County reimbursement penalties shall only be assessed if the county is at least 7% below on assessments and has been for the two preceding years.

STATE SCHOOL AID DEDUCTION FOR LOCAL PROPERTY TAXES - The Line 2 state aid deduction for property taxes is weighted at 98.5% for FY 2000 and thereafter. Hold harmless districts shall receive, beginning November 1999, an additional hold harmless payment equal to 3/4% of the line 2 deduction.

The changes to state school aid shall become effective July 1, 2000, and all other provisions become effective January 1, 2000.
OTTO FAJEN