SJR 040 - Fiscal Note

Fiscal Note - SJR 040 - Eliminates Tax Abatement on Redevelopment of Blighted Areas

L.R. NO.  3530-01
BILL NO.  SJR 40
SUBJECT:  Constitutional Amendment: Property Tax
TYPE:     Original
DATE:     March 4, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

General Revenue          ($17,600)

Total Estimated
Net Effect on All
State Funds              ($17,600)                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

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                $0             Unknown           Unknown


                              FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Revenue and the Department of Economic
Development stated that this proposal would not affect their agencies,
administratively.

Officials of the Department of Economic Development suggest that the proposal
could, in the long term, discourage economic development programs in affected
areas.

The elimination of tax relief for certain property would result in additional
taxes for those political subdivisions containing tax-relieved property. It
is not known which projects in which political subdivisions would be
affected. (It is also not known how elimination of tax relief would affect
future redevelopment projects.)

Advertisement costs for the proposal would be $1,220 per newspaper column
inch for the text of the proposal, the introduction, title, fiscal note
summary, and affidavit.  The proposal would be on the ballot for the November
1996 general election.

FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999

GENERAL REVENUE FUND

Cost to General Revenue Fund
  Secretary of State
  Newspaper Advertisements     ($17,600)

FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999

POLITICAL SUBDIVISIONS

Income-Property tax from Tax-abated
Property                              $0   Unknown   Unknown


DESCRIPTION

This proposal would eliminate tax abatements on redevelopment of obsolete,
blighted or decadent areas. Currently, tax abatements for redevelopment
projects in these areas may receive tax abatements for multiple twenty-five
year periods.

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
Department of Revenue
Secretary of State