SB 0733 Increases property tax withholdings for collection costs; reduces state aid deduction for school tax
LR Number:2304S.03I Fiscal Note:2304-03
Committee:Local Government and Economic Development
Last Action:02/22/00 - SCS Voted Do Pass S Local Government & Economic Journal page:
Development Committee
Effective Date:Varies
Full Bill Text | All Actions | Available Summaries | Senate Home Page | List of 2000 Senate Bills
Current Bill Summary

SCS/SB 733 - 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 classification counties collecting $2 M or more; and 1% for first classification counties and St. Louis City.

The act creates the "Tax Maintenance Fund" for funding additional operating and administrative costs of collecting taxes. Deductions shall apply only to payments for tax years beginning on or after January 1, 2001. Additional property tax withholding varies by county as follows:

1/4% for first classification, non-charter counties; 1/2% for second, third and fourth classification counties; and 1% for township counties.

Collectors shall annually certify to school districts and to the Department of Elementary and Secondary Education the amount of increased withholding pursuant to sections 52.260 and 52.315, RSMo.

First classification charter counties and St. Louis City shall collect 3% of fees and commissions collected pursuant to section 52.260, RSMo, for deposit into the Fund.

Counties which become first classification on or after January 1, 1999, shall continue to withhold 1/2% until the amount collected at 1/4% equals or exceeds the amount collected at 1/2% the last year prior to becoming first classification counties.

This act revises the requirements for county maintenance of GR effort and specific provisions regarding the uses of the fund.

The line 2 state school aid deduction for property taxes is reduced by the amount of increased withholding certified pursuant to this act (Sections 52.260 and 52.315, RSMo). Hold harmless districts shall receive, beginning November, 2001, an additional hold harmless payment equal to the amount of increased withholding certified pursuant to this act (Sections 52.260 and 52.315, RSMo).