COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4791-01
Bill No.: SB 1331
Subject: Economic Development; Cities, Towns and Villages.
Type: Original
Date: March 9, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $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 3 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 Economic Development did not respond to our request for fiscal impact.
Officials from St. Louis County state this bill allows a county to designate a particular area within its boundaries as a "municipality" for the purposes of offering MODESA incentives. It would allow St. Louis County to designate specific unincorporated areas for MODESA development, but there are no MODESA projects currently in existence. The impact on future revenues will depend on whether any such projects are proposed. MODESA requires that a countywide authority be created to make recommendations regarding development proposals. MODESA may impact future real property and sales taxes.
Passage of HB 289 in 2003 established the Missouri Downtown Economic Stimulus (MODESA) Act and the Missouri Rural Economic Stimulus Act (MORESA) . The annual cap of new state revenue that would be redirected back to the MODESA projects is $150 million while for MORESA projects it is $12 million. This proposal does not change the annual caps established in subsections 99.963.1(1) and 99.1048.1(1), which was reflected on the fiscal note in 2003. Oversight assumes that since this proposal does not change the annual caps, the proposal may result in increased utilization of the programs, but not more than what reflected in the fiscal note for TAFP HB 289 in 2003. Therefore, Oversight assumes this proposal will not have a fiscal impact to the state.
| 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.
DESCRIPTION
This proposal revises the definition of "municipality" to include a portion of a county designated by the county as a development project area for the purposes of Sections 99.915 to 99.1060, RSMo.
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
St. Louis County
NOT RESPONDING:
Department of Economic Development
Mickey Wilson, CPA
Director
March 9, 2004