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 0348 - Authorizes increases in the maximum property tax levys for certain purposes
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 1468-01
BILL NO.: Truly Agreed To And Finally Passed SB 348
SUBJECT: Taxation and Revenue-Property: Health Care
TYPE: Original
DATE: April 28, 1999
FISCAL SUMMARY
|
ESTIMATED NET EFFECT ON STATE FUNDS | |||
| FUND AFFECTED | FY 2000 | FY 2001 | FY 2002 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $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 | Unknown* | Unknown* |
| Kansas City* | $0 | $0 to $14,650,000 | $0 to 14,650,000 |
*Dependent upon voter approval.
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
The proposal would not affect any state government fund sources.
Oversight notes that raising the tax ceilings for public hospitals and hospital districts could result in increased revenue to local government. Any increase would be contingent upon voter approval. Reporting requirements would not materially affect hospital administration.
The Kansas City debt service levy is $.17 per $100 assessed valuation, the Kansas City health levy is $.49, and the total Kansas City property tax levy is $1.36. The total levy ceiling is $1.50. If Kansas City elects to do so, it can elect to impose, under section 92.031, an annual debt service levy independent of and in addition to the taxes for public health, hospital, recreation and museum purposes authorized in 92.030. This election would allow Kansas City to set the 92.030 debt service levy to zero. Setting the debt service levy to zero would allow raising the health levy by $.31 if the current $.50 ceiling is raised to $1.00. The $.49 health levy produces about $23,1500,000. If the levy were raised $.31 it would produce an additional $14,650,000 per year. However, any increase in the levy would have to be approved by the voters of Kansas City.
| FISCAL IMPACT - State Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Local Government | FY 2000 | FY 2001 | FY 2002 |
| (10 Mo.) | |||
| COUNTIES AND HOSPITAL DISTRICTS | |||
| Income - Increased Property Tax | 0 | Unknown* | Unknown* |
| *There is the possibility of increased income to counties and hospital districts, contingent upon voter approval. | |||
| CITY OF KANSAS CITY | |||
| Income - Increased Health Levy* | 0 | 0 | 0 |
| to | to | ||
| $14,650,000 | $14,650,000 | ||
| *subject to approval of voters of Kansas City. | |||
| FISCAL IMPACT - Small Business | |||
| Small businesses could be affected by this proposal, but only after voter approval. | |||
DESCRIPTION
This proposal would increase the ceiling on property taxes which may be imposed by counties to support county hospitals or by hospital districts from $.50 to $1.00 per $100 assessed valuation. Hospitals which would benefit from any proposal to impose a tax greater than $.50 would be required to publish plans for using revenues from the increased levy in newspapers of general circulation and make a summary of the plans available upon request.
This proposal would allow the voters of Kansas City to approve a health levy of up to $1.00. The maximum possible levy is now $.50.
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
City of Kansas City
State Auditor: Review of 1998 Property Tax Rates
Jeanne Jarrett, CPA
Director
April 28, 1999