COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO. 2673-01

BILL NO. SB 676

SUBJECT: Housing: Recorder of Deeds, Fees

TYPE: Original

DATE: February 11, 2000




FISCAL SUMMARY


ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Mo. Housing Trust Unknown Unknown Unknown
Total Estimated

Net Effect on All

State Funds

Over $100,000 Over $100,000 Over $100,000



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Economic Development (DED) - Missouri Housing Development Commission assume this proposal would increase the amount of fees that would be deposited into the Missouri Housing Trust Fund. Officials could not estimate the amount of additional revenue expected, however, officials assume they would be able to administer these additional funds with current staff.



Officials of the State Treasurer's Office assume no fiscal impact.



Boone County Recorder of Deeds stated that their office is computerized and assume that to collect the additional fee would require modifying their current programs. Officials were unsure of costs but assumed it would cost approximately $3,000. Officials assume this would be a one time cost.



In responses to identical legislation from last session the following counties made the following statements.



St. Charles County Recorder of Deeds assumes no fiscal impact to their office, however, had this legislation been in effect the full year of 1998 the Missouri Housing Trust Fund would have received an additional $6,003.



Greene County Recorder of Deeds stated there would be an increase in revenue for the Missouri Housing Trust Fund. Officials stated that in 1998 their office paid $208,089 in fees to the Missouri Housing Trust Fund for recording 69,363 real estate instruments.



Callaway County Recorder of Deeds assumes some insignificant administrative impact.



Oversight assumes collecting a fee of $3.00 on all recorded documents rather than only mortgage related documents would generate fees in excess of $100,000 annually. Income to the Missouri Housing Trust Fund will be shown as unknown.



Oversight assumes, based on information supplied by Recorders of Deeds, that any impact to counties would be insignificant and would have no fiscal impact.









FISCAL IMPACT - State Government FY 2001 FY 2002 FY 2003

(10 Mo.)



MO. HOUSING TRUST FUND



Income to Mo. Housing Trust Fund

(Section 59.319. 2 and 3)

Increase in Fee Revenue from

Recorder of Deeds Unknown Unknown Unknown



ESTIMATED NET EFFECT TO

MO. HOUSING TRUST FUND Unknown* Unknown* Unknown*



*Income is expected to exceed $100,000 annually.





FISCAL IMPACT - Local Government FY 2001 FY 2002 FY 2003

(10 Mo.)

Income to Recorder of Deeds

(Section 59.319. 2 and 3)

Collection of Fees Unknown Unknown Unknown





Cost to Recorder of Deed

Transfer of Fees to Mo.

Housing Trust Fund

(Section 59.319. 2 and 3) (Unknown) (Unknown) (Unknown)





ESTIMATED NET EFFECT TO

COUNTY RECORDER OF DEEDS $0* $0* $0*





*Income collected from fees would equal cost when Recorders turn over fees collected.





FISCAL IMPACT - Small Business



Small businesses which have instruments recorded would be affected by this proposal.









DESCRIPTION



This act makes several grammatical changes to Section 59.319, RSMo, relating to the collection of fees by county recorders. The act corrects outdated references to statutes.



The three dollar fee collected by County Recorder of Deeds for the Missouri Housing Trust Fund would be applied to all instruments recorded, not just to deed and other instruments of real estate.



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 Economic Development - Mo. Housing Development Commission

State Treasurer

Callaway County - Recorder of Deeds

Greene County-Recorder of Deeds

St. Charles County Recorder of Deeds









Jeanne Jarrett, CPA

Director

February 11, 2000