This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0053 - Prohibits revision of any tax levy to include inflationary growth
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0365-02
BILL NO.: SB 53
SUBJECT: Taxation and Revenue-Property
TYPE: Original
DATE: February 7, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| General Revenue | $0 | $0 | (Unknown) |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | ($65,000,000) | ($66,300,000) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
State Tax Commission officials estimate losses to political subdivisions to be about $65,000,000 assuming a 2% inflation rate.
Oversight assumes the State Auditor's annual Review of property tax rates would fulfill terms of this proposal.
Oversight also notes that the proposal would reduce the local deductions in the Foundation Formula thus increasing cost to fully fund the Formula.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| GENERAL REVENUE | |||
| Cost - Increase in Foundation Formula | $0 | $0 | (Unknown) |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| POLITICAL SUBDIVISIONS | |||
| Loss - Reduced Property Taxes | $0 | ($65,000,000) | ($66,300,000) |
| FISCAL IMPACT - Small Business | |||
| Small businesses which own property would be affected by this proposal. | |||
DESCRIPTION
This proposal would eliminate political subdivisions' authorization to revise property tax levies to account for inflationary assessment growth. It would also to provide an annual report on taxes collected and levies for the previous year by the end of January.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not affect Total State Revenues.
SOURCES OF INFORMATION
State Tax Commission
Jeanne Jarrett, CPA
Director
February 7, 1999