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 - SJR 015 - Removes authorization for political subdivisions to revise tax levies to adjust for inflation
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 0919-01
BILL NO.: SJR 15
SUBJECT: Taxation and Revenue-Property
TYPE: Original
DATE: February 7, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| General Revenue | $0 | ($54,200) | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | ($54,200) | $0 |
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Local Government | $0 | $0 | ($66,300,000) |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
State Tax Commission officials estimate losses to political subdivisions to be about $65,000,000 in FY 2001 assuming a 2% inflation rate. Oversight assumes the first year affected would be FY 2002.
Officials of the Department of Elementary and Secondary Education note that the proposal would reduce the local deductions in the Foundation Formula thus increasing cost to fully fund the Formula. (This effect would begin with FY 2003.)
Advertisement costs for the proposal would be $3,990 per newspaper column inch for three publications of the text of the proposal, the introduction, title, fiscal note summary, and affidavit. The proposal would be on the ballot for the November 2000 general election.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| Cost to General Revenue Fund | |||
| Secretary of State | |||
| Newspaper Advertisements | ($54,200) | ||
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| POLITICAL SUBDIVISIONS | |||
| Loss - Reduced Property Taxes | $0 | $0 | ($66,300,000) |
| FISCAL IMPACT - Small Business | |||
| Small businesses which own property would be affected by this proposal. | |||
DESCRIPTION
This proposal would eliminate political subdivisions' authorization to revise property tax levies to account for inflationary assessment growth.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. The proposal would not affect Total State Revenues.
SOURCES OF INFORMATION
State Tax Commission
Jeanne Jarrett, CPA
Director
February 7, 1999