- Introduced -

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.

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 exceed the amount collected at 1/2% the last year prior to becoming first classification counties.

EQUALIZATION OF ASSESSMENTS - The act increases the assessment tolerance from 5% to 7% for equalization of assessment and for penalties to the assessor. County reimbursement penalties shall only be assessed if the county is at least 7% below on assessments and has been for the two preceding years.

STATE SCHOOL AID DEDUCTION FOR LOCAL PROPERTY TAXES - The Line 2 state aid deduction for property taxes is weighted at 98.5% for FY 2002 and thereafter. Hold harmless districts shall receive, beginning November 2001, an additional hold harmless payment equal to 3/4% of the line 2 deduction.

The changes to state school aid shall become effective July 1, 2001, and all other provisions become effective January 1, 2001.

OTTO FAJEN