COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 0963-01
Bill No.: SB 441
Subject: Political Subdivisions: Lead Abatement, Property Tax
Type: Original
Date: March 17, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | (Unknown) | (Unknown) | (Unknown) |
ASSUMPTION
Officials of the Missouri State Tax Commission stated that this proposal would have no fiscal impact to their Commission, however, officials stated that this proposal could result in an unknown revenue loss to local political subdivisions.
Officials of the City of Fulton stated that this proposal would have no fiscal impact unless the governing body of the city would choose to participate in the lead abatement program.
Oversight assumes that the proposal as written would not mandate that cities and counties participate in the lead abatement program. Therefore, Oversight assumes that unless the governing body of a political subdivision would choose to participate, there would be no fiscal impact. If a political subdivision would participate the City or County taxing jurisdictions that rely upon the property tax system for funding, would realize an unknown loss of revenue in tax dollars generated by the property having it's taxes abated. All taxing jurisdictions revenue would be affected except schools and the State's Blind Pension Fund. The municipality or county would be allowed to charge a reasonable processing fee for the issuance of certificates of tax abatement pursuant to this proposal. Oversight assumes the fee would be in amount that would cover the cost of printing and mailing the certificate of participation.
ASSUMPTION (continued)
Although this proposal is permissive, Oversight will show fiscal impact to the political subdivisions as a loss of an unknown amount of revenue from the tax abatement program, and income in an unknown amount from issuing certificates of participation. The unknown Cost of printing and possibly mailing certificates of participation will be deducted.
The following political subdivisions did not respond to this proposal: The County Commissions/ Executives of: St. Charles County, St. Louis County, Jackson County, Greene County, Callaway, County, Boone County, and the City Managers of: Kansas City, St. Louis, St. Joseph, Springfield, St. Charles, and Columbia.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| CERTAIN CITIES, MUNICIPALITIES | |||
| Income to Certain Political Subdivisions | |||
| from processing fee | Unknown | Unknown | Unknown |
| Cost to Certain Political Subdivisions | |||
| from printing and mailing certificates | (Unknown) | (Unknown) | (Unknown) |
| Total Effect to Certain Political Subdivisions |
$0 |
$0 |
$0 |
| POLITICAL SUBDIVISIONS | |||
| Loss to Certain Taxing Jurisdictions | |||
| from property tax abatement. | (Unknown) | (Unknown) | (Unknown) |
FISCAL IMPACT - Small Business
Small businesses which own properties eligible for an abatement could be affected by this proposal..
DESCRIPTION
This act allows any county, any municipality and the city of St. Louis to provide for an abatement of a portion of real property tax liability for certain facilities involved in lead abatement projects.
The lead abatement project must be a qualified lead abatement project under existing law, certified by the Department of Health, and must be for a child-occupied dwelling. The tax abatement will only be given against that portion of the real property tax liability which is not allocated to schools or the Blind Pension Fund.
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
Missouri State Tax Commission
City of Fulton
NOT RESPONDING:
The Counties of : St. Charles, St. Louis, Jackson, Greene, Callaway, Boone, and the City Managers of : Kansas City, St. Louis, St. Joseph, Springfield, St. Charles, and Columbia.
Mickey Wilson, CPA
Director
March 17, 2003