COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



LR No.: 0226-01

Bill No.: SB 178

Subject: Jackson County: Property Taxes, Installments

Type: Original

Date: March 28, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government (Minimal) (Minimal) (Minimal)




FISCAL ANALYSIS



ASSUMPTION



Officials not responding: Jackson County Collector of Revenue, and the Jackson County Executive.



Officials of the Kansas City Manager's Office assume this proposal would not reduce tax revenues, but receipt of some tax revenue would be delayed. Officials assume this would hinder the City's budgeting process.



Officials of the School District of Kansas City stated that any slowdown in revenue collections during this current time when everyone is experiencing budget shortfalls will cause serious negative impact on the District's cash flow.



Oversight assumes that;



1) The Jackson County Collector of Revenue would have administrative impact of establishing and maintaining an installment collection system. Oversight assumes impact would be minimal and is dependent upon the number of individuals that would be eligible and would use this system.





ASSUMPTION (continued)



2) Installment collections would be collected for the year ending rather than the year beginning as is done by loan institutions and payments being held in escrow for that year.



3) Collections would be delayed, however, income would not be reduced.



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
JACKSON COUNTY
Administrative Impact- Collector (Minimal) (Minimal) (Minimal)



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This act requires the Jackson County Collector to permit taxpayers with hardships to pay their real property taxes in equal monthly or quarterly installments. To qualify, a taxpayer, or in the case of joint ownership, taxpayers, must own the property and use it as their principal residence. A hardship is defined as either having a Missouri adjusted gross income of less than $15,000 for an individual or $20,000 for a couple, or being unemployed currently or at any time in the three months prior to applying for the installment payment method. Interest for delinquent taxes will only apply if the taxpayer(s) is more than 30 days late paying any monthly or quarterly installment.

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 Kansas City

School District of Kansas City



NOT RESPONDING:



Jackson County Collector of Revenue

Jackson County Executive



































Mickey Wilson, CPA

Director

March 28, 2003