COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0036-02

Bill No.: SB 104

Subject: Housing: Fees

Type: Original

Date: January 28, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Mo. Housing Trust $2,921,757 to Unknown $3,506,108 to Unknown $3,506,108 to Unknown
Total Estimated

Net Effect on Other

State Funds

$2,921,757 to Unknown $3,506,108 to Unknown $3,506,108 to Unknown



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Economic Development- Missouri Housing Commission stated that this proposal would increase the amount of the recording fee from $3 to $5 per document that is deposited into the Missouri Housing Trust Fund. This bill also broadens the scope of documents charged a recording fee to include all documents, except those related to marriage licenses, marriage contracts, or marriage certificates. Officials estimate there would be approximately 1,753,054 mortgage-related documents recorded. If the fee were increased by $2 per document, the amount of increased revenue to the Missouri Housing Trust Fund would be $3,506,108. Officials stated that this does not include non-mortgage related documents filed annually. Officials could not estimate that amount of revenue. Officials assume no administrative impact.



Oversight will show fiscal impact to the Missouri Housing Trust Fund as $3,506,108 to Unknown. In FY 2004 collections would be for only 10 months or $2,921,757.













FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
Income to Mo. Housing Trust Fund
from Recorder's fee increase and expanded universe of document filings subject to fee. $2,921,757 to Unknown $3,506,108 to Unknown $3,506,108 to Unknown





FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
Income to Recorder of Deeds
from expanded fee on filings $2,921,757 to Unknown $3,506,108 to Unknown $3,506,108 to Unknown
Cost to Recorder of Deeds
from transfer of fees to Mo. Housing Trust Fund ($2,921,757 to Unknown) ($3,506,108 to Unknown) ($3,506,108 to Unknown)
Total Effect to Counties $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 increases the fee for the Housing Trust Fund from $3 to $5. This act also broadens the types of recordable instruments in which the fee will apply. Under current law, the $3 fee only applies to certain types of real estate transactions. Under the act, the increased fee would apply to the recording of any instruments, except marriage contracts, certificates of marriage or marriage licenses.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION



Department of Economic Development- Missouri Housing Commission



NOT RESPONDING:



Recorder of Deeds of: Callaway, Boone, Greene, and St. Louis Counties































Mickey Wilson, CPA

Director

January 28, 2003