This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0644 - Requires leasehold interests of certain real property of MU to be subject to property tax
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 2972-01
BILL NO. SB 644
SUBJECT: Education, Higher: Taxation and Revenue
TYPE: Original
DATE: March 13, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 Blind Pension Fund
$0
$3,200
$3,300
Total Estimated
$0
$3,200
$3,300
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $694,885 | $715,789 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Coordinating Board For Higher Education and the State Tax Commission stated the proposal would result in no fiscal impact to them.
Officials from the University of Missouri assume the proposal would result in no fiscal impact to them because the property tax would be charged to the lessees.
Officials from the St. Charles County Assessor's office figured the effect on all county funds for FY 2001 and 2001 assuming level tax rates and 3% growth rate.
Officials from the Boone County Assessor's Office assumed, in a response to a similar proposal from the 1997 legislative session, the proposal could result in additional property tax revenue of $100,000 the first year and $200,000 the following years from property leased by a private company from the University of Missouri with an estimated market value of $5,000,000. The property tax rate is $6.27.
The Oversight Division assumes that current law already removed the property tax exemption for the recreational portion of the St. Charles County property. Therefore, the fiscal impact section includes a portion of the St. Charles County property and Boone County property.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| BLIND PENSION FUND | |||
| Income-Additional Property Tax | $0 | $3,200 | $3,300 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| ST. CHARLES COUNTY | |||
| Income-Property Taxes | $0 | $494,885 | 509,789 |
| BOONE COUNTY | |||
| School Tax | $0 | $144,000 | $148,320 |
| County Road Fund | 0 | 1,595 | 1,643 |
| Other | 0 | 54,405 | 56,037 |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | (10 Mo.) | ||
| Total Income-Boone County | $0 | $200,000 | $206,000 |
|
ESTIMATED NET EFFECT ON LOCAL | |||
| GOVERNMENT | $0 | $694,885 | $715,787 |
| FISCAL IMPACT - Small Business | |||
Small businesses could be fiscally impacted if they leased property from the University of Missouri and paid the property taxes through the leases.
DESCRIPTION
The proposal would remove the power of eminent domain from the Curators of the University of Missouri in acquiring land and constructing facilities for research, development and office park projects. Leased land and real property would not be exempt from property tax.
This legislation is not federally mandated, would not duplicate any other program, would not require additional capital improvements or rental space and would affect total state revenues.
SOURCES OF INFORMATION
University of Missouri
Coordinating Board For Higher Education
State Tax Commission
Boone County Assessor
Jeanne Jarrett, CPA
Director
March 13, 1998