COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



LR No.: 2956-02

Bill No.: Perfected SCS for SB 789

Subject: Counties: Classifications

Type: Original

Date: February 10, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



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

Net Effect on All

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 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 or Unknown $0 or Unknown $0 or Unknown




FISCAL ANALYSIS



ASSUMPTION



Officials of the State Tax Commission assume no fiscal impact to the Commission.



Jasper County Commission assume this proposal could save a second class county the cost of establishing a juvenile center, medical examiner, and salary increases of elected officials until the Commission decides the county could afford it.



Franklin County Commission assumes no fiscal impact.



Oversight assumes the provisions of Sections 48.020 and 48.030 is procedural in nature and could have fiscal impact. By raising the required assessed valuation for a classification change could possibly postpone a county from changing classification until a later date or indefinitely, thereby postponing a possible increase in the expenditure of money on salaries, new offices, etc. For purposes of this fiscal note, Oversight assumes this proposal could save certain counties money from postponing a classification change. Fiscal impact to certain counties will be shown as $0 or Unknown savings. This proposal has an Emergency Clause.



FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Local Government FY 2005

(10Mo.)

FY 2006 FY 2007
CERTAIN COUNTIES
Savings - to certain counties
postponing class change $0 or Unknown $0 or Unknown $0 or Unknown



FISCAL IMPACT - Small Business



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



DESCRIPTION



This act modifies the classification of counties. The assessed valuation necessary to qualify as a first class county is increased from the current $450 million to $600 million. The assessed valuation necessary to qualify as a second class county is increased from the current $300

million to $450 million. No county will move to a lower classification than its current classification as a result of the changes in the assessed valuation requirement, however, such a county may move to a lower classification after five years at a level below the requisite amount for the county's current classification.

This act modifies Section 48.030, RSMo, to allow any county that has the requisite assessed valuation to become a first class county to choose to do so upon an affirmative vote of the county's governing body, even though the county has not had such valuation for five successive years as required under current law.

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



Missouri State Tax Commission

Jasper County Commission

Franklin County Commission



NOT RESPONDING



Boone County Commission

Callaway County Commission

Cole County Commission

Greene County Commission

Johnson County Commission

Jefferson County Commission

Warren County Commission

Marion County Commission

Taney County Commission



















Mickey Wilson, CPA

Director

February 10, 2004