SB 973 - 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 class counties collecting $2 M or more; and 1% for first class 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: 1/8% for first class, non-charter counties, 1/4% for second, third and fourth class counties, and 1/2% for township counties.

Counties which become first class on or after Jan. 1, 1999 shall continue to withhold 1/4% until the amount collected reaches the amount collected the last year prior to becoming first class.

APPROVAL OF ASSESSMENT MAINTENANCE PLANS - If the State Tax Commission and county do not agree on an assessment maintenance plan, the county may appeal first to the Administrative Hearing Commission and then to the circuit court of the county.

PROPERTY TAX WITHHOLDING FOR ASSESSORS - Increases property tax withholding for funding assessments to the following levels: 5/8% for first and second class counties; and 1 1/4% for third and fourth class counties. Counties which become second class 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 1999 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 assessor.

STATE SCHOOL AID DEDUCTION FOR LOCAL PROPERTY TAXES - The Line 2 state aid deduction for property taxes is weighted at 99% for FY 2000 and 98% for FY 2001 and thereafter. Hold harmless districts shall receive, beginning Nov. 1999, an additional hold harmless payment equal to 1% of the line 2 deduction.

The changes to state school aid shall become effective July 1, 1999, and all other provisions become effective January 1, 1999.
OTTO FAJEN