COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3094-01
Bill No.: SJR 36
Subject: Taxation and Revenue - Property; Taxation and Revenue - General; Constitutional Amendments; Property, Real and Personal
Type: Original
Date: February 4, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| General Revenue | ($36,840) | $0 | $0 |
| Total Estimated
Net Effect on General Revenue Fund |
($36,840) | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds * |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Department of Revenue assume this proposal would have no impact on their organization, but may have an impact on total state revenues.
Officials from the Office of the Secretary of State, in response to a similar proposal, assumed that statewide newspaper publication of state statutes cost approximately $1,228 per column inch based on an estimate provided by the Missouri Press Service. Since three printings are required by the constitution and state statute, the cost is $1,228 x 3 = $3,684 per column inch. The estimated total number of inches for this amendment is 10 inches including title header and certification paragraph, therefore the total estimated publication cost is $3,684 x 10 inches = $36,840. These costs are subject to change.
ASSUMPTION (continued)
Officials from the State Tax Commission (TAX) assume this proposal would have no impact on their organization. If this resolution is approved by Missouri voters, beginning January 1, 2005 livestock and grain will be exempt from personal property taxes. There would be an impact to the local political subdivisions from a reduction of operating revenue currently being collected.
TAX stated the 2003 assessed valuation for livestock is $165,950,606 and the assessed valuation for grain is $1,392,140. For the purposes of this fiscal note TAX assumes that this figure will be somewhat constant in FY 06 and FY-07.
$165,950,606 (2003 assessed valuation of livestock) x $6.13 per hundred dollars (average state tax rate) = ($10,172,772).
$1,392,140 (2003 assessed valuation of grain) x $6.13 per hundred dollars (average state tax rate) = ($85,338.)
Total (loss) of revenue is ($10,258,110).
Note: TAX used the statewide weighted average levy of $6.13 per hundred dollars of assessed valuation. As most of the livestock and grain would be assessed in the rural areas of this state, the stateside tax rate may be a little high and the actual levy and revenue loss would be lower.
Officials from the Office of the Cole County Assessor, and the Office of Administration, Division of Budget and Planning, did not respond to our request for information.
Oversight assumes this proposal, if approved, would be submitted to the voters in November of 2004 (FY 2005) and additional legislation would be required to create the exemption. There would be a loss to the state Blind Pension Fund of approximately ½ of 1% of the loss to local governments.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. Small businesses involved in agriculture and agribusiness would be impacted by the legislation granting a tax exemption should this proposal pass and be approved by the voters.
DESCRIPTION
This proposal would submit to a vote of the people a constitutional amendment authorizing a statutory exemption from property taxation for livestock and grain.
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
Department of Revenue
Office of the Secretary of State
State Tax Commission
NOT RESPONDING
Office of the Cole County Assessor
Office of Administration
Division of Budget and Planning
Mickey Wilson, CPA
Director
February 4, 2004