COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1940-01

Bill No.: SB 634

Subject: Taxation and Revenue - Property; Economic Development; St. Louis.

Type: Original

Date: March 17, 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
None
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



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
None
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 or Unknown $0 or Unknown $0 or Unknown




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Economic Development (DED) state this proposal modifies the applicability of certain property taxes to certain tax increment financing projects. DED assumes the proposal would only affect local tax increment financing, and therefore, would have no fiscal impact on their agency.



Officials from the St. Louis Public Schools assumes this proposal would not fiscally impact their agency.



Officials from the City of St. Louis did not respond to our request for fiscal impact.



Oversight assumes that since this proposal states that effective January 1, 2002, the transitional district's operating levy will not be subject to any new or existing tax increment financing (with one exception), the proposal could result in additional income to the transitional school district. Oversight has reflected this as a fiscal impact of $0 to Unknown.



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
ST. LOUIS PUBLIC SCHOOLS
Income - Possible income from additional taxes due to TIF projects



$0 or Unknown


$0 or Unknown


$0 or Unknown
ESTIMATED NET EFFECT TO THE ST. LOUIS PUBLIC SCHOOLS $0 OR UNKNOWN $0 OR UNKNOWN $0 OR UNKNOWN




FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.





DESCRIPTION



This proposal prevents the transitional district operating levy authorized in current law from being subject to certain tax increment financing projects. The tax will not be subject to any certificate of tax

abatement issued after August 28, 1998, or, as of January 1, 2002, such tax will not be subject to any TIF project in St. Louis with the exception of a project concerning a convention headquarters hotel adopted by ordinance in St. Louis after August 28, 2003.



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

St. Louis Public Schools



NOT RESPONDING: City of St. Louis











Mickey Wilson, CPA

Director

March 17, 2003