COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2854-01

Bill No.: SJR 30

Subject: Taxation and Revenue - Property; Veterans; Counties; Constitutional Amendments.

Type: Original

Date: December 29, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
General Revenue ($34,850) $0 $0
Total Estimated

Net Effect on

General Revenue

Fund

($34,850) $0 $0



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Blind Pension $0 (Unknown) (Unknown)
Total Estimated

Net Effect on All

State Funds

$0 (Unknown) (Unknown)



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 (Unknown) (Unknown)




FISCAL ANALYSIS



ASSUMPTION



Officials from the Cole County Assessor's Office assume this proposal would have no impact on their office or on political subdivisions in Cole County since property owned by veterans' organizations is not currently being assessed or taxed.



Officials from the office of the Secretary of State (SOS) stated that statewide newspaper publication of constitutional amendments cost approximately $1,161 per column inch per publication date based on an estimate provided by the Missouri Press Service. The SOS estimated this proposal would require 10 column inches including title header and certification paragraph, for three required publications. (($1,161 x 3=$3,485) x 10=$34,850). Costs based on 2003 figures and subject to change.



Officials from the Office of Administration, Division of Budget and Planning, and Division of Design and Construction, the Department of Revenue, and the Office of the Attorney General, assume this proposal would have no impact on their organization.







ASSUMPTION (continued)



Officials from the State Tax Commission assume this proposal would reduce tax revenues for political subdivisions, but they are unable to estimate the impact of this proposal because they do not have any information regarding the number of veterans' organizations or the amounts of taxable property they own.



Oversight assumes the proposal would be submitted to the voters in November 2004. Oversight also assumes there would be an unknown reduction in political subdivision revenues as a result of this proposal, and an impact to the state Blind Pension Fund of approximately one-half of one percent of the impact to political subdivisions. Any impact to tax revenues would begin in FY 2006 since 2004 taxes collected in FY 2005 would already be determined before the November 2004 election.



FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
GENERAL REVENUE FUND
Cost - Secretary of State
Publication cost ($34,850) $0 $0
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($34,850) $0 $0
BLIND PENSION FUND
Revenue reduction
Property taxes $0 (Unknown) (Unknown)
ESTIMATED NET EFFECT ON BLIND PENSION FUND



$0


(Unknown)


(Unknown)














FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
POLITICAL SUBDIVISIONS
Revenue reduction
Property taxes $0 (Unknown) (Unknown)
ESTIMATED NET EFFECT ON
POLITICAL SUBDIVISIONS $0 (Unknown) (Unknown)



FISCAL IMPACT - Small Business



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



DESCRIPTION



This proposal would propose an amendment to the state constitution to exempt property owned by veterans' organizations from property taxation. The amendment would be submitted to the voters in the November 2004 general election, or at a special election to be called by the governor.



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



Office of the Attorney General

Office of the Secretary of State

Office of Administration

Division of Budget and Planning

State Tax Commission

Department of Revenue

Office of the Cole County Assessor





Mickey Wilson, CPA

Director

December 29, 2003