This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0626 - Allows Vacant Housing Fee by Cities
L.R. NO. 2427-01
BILL NO. SB 626
SUBJECT: Housing: Cities
TYPE: Original
DATE: January 10, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government Unknown Unknown Unknown
FISCAL ANALYSIS
ASSUMPTION
The following City governments have stated that this proposal is permissive
and would have no fiscal impact unless action was taken by their governing
bodies: Cities of Columbia, Poplar Bluff, Jefferson, Liberty and Mexico.
Senate Bill 158 from last session is identical to this proposal. Responses
to last session's legislation were as follows:
Officials from Kansas City assume that if they would, by ordinance impose a
quarterly fee on housing code violators that there would be fiscal impact.
Officials estimate there are approximately 4,000 vacant residential
properties that would be subject to the quarterly fee. Officials estimate
annual income from the fee and other penalties to be $800 per parcel for a
potential total of $3,200,000, (4000 x $800 = $3,200,000), however, city
officials estimate that approximately $1,800,000 would be collectable.
Officials estimate that there would be administrative cost due to inspections
etc., which are estimated to total $1,600,000 annually thereby resulting in
an overall positive fiscal impact of $200,000 annually.
Officials from the City of Poplar Bluff stated that they estimate cost for
administration to be $22,313, and income from the quarterly fee and penalties
to be $24,000 resulting in a slight positive fiscal impact. Officials assume
that this proposal would be permissive.
Oversight staff assume that this proposal is permissive and would not require
reimbursement to local governments under Article X, section 21 of the
Missouri Constitution.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Income to Municipalities
Municipalities that elect to assess a quarterly registration fee on property
owners in violation of applicable housing codes would realize income.
Cost to Municipalities
Municipalities that elect to assess a quarterly registration fee could have
administrative cost from compliance inspections, assessment appeals, and
other administrative cost.
DESCRIPTION
This act would allow any city by ordinance the right to impose a quarterly
fee of $200 on owners of residential property or commercial housing property
if that property is vacant and in violation of the housing code. A municipal
officer would make the initial determination, and the owner could appeal or
improve the property with thirty days. If improved, the owner could ask for
reinspection. If the fee is still imposed, the owner would be allowed to
appeal. Delinquent fees would be come a lien upon the property.
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
City of Columbia
City of Jefferson
City of Liberty
City of Mexico
Kansas City Manager
Poplar Bluff - City Manager
NOT RESPONDING: City of St. Louis, City of Fulton, City of Springfield, City
of Independence, City of Florissant, City of Hazelwood