COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO.: 635-02
BILL NO.: HCS for SB125
SUBJECT: Community Development: City of Springfield
TYPE: Corrected
DATE: April 27, 2001
# Corrected to reflect proper fiscal year
FISCAL SUMMARY
| FUND AFFECTED | #FY 2002 | #FY 2003 | #FY 2004 |
| General Revenue | $0 to ($200,000) | $0 to ($200,000) | $0 to ($200,000) |
| Road | (Unknown) | (Unknown) | (Unknown) |
| Total Estimated
Net Effect on All State Funds* |
(Unknown) | (Unknown) | (Unknown) |
* Could exceed ($200,000) annually.
| FUND AFFECTED | #FY 2002 | #FY 2003 | #FY 2004 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | #FY 2002 | #FY 2003 | #FY 2004 |
| Local Government | $83,874 to $104,707 | $100,649 to $125,649 | $100,649 to $125,649 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 8 pages.
ASSUMPTION
Officials of St. Louis County assume no fiscal impact.
Sections 135.200 and 135.230
Officials from the Department of Economic Development (DED) assume the bill will allow hotels and motels in Salem, Missouri/Dent County to qualify for some local tax abatement. There would be no impact on DED or cost to the state, unless it was determined that the bill imposes new duties on the city/county that should be paid for by the state.
DED states Section 135.230 changes the residency requirement for Enterprise Zone credits for SIC Code 3751. This part of the bill is the same as FN 1886-01 which DED initially projected as a $0 to $200,000 cost. However, DED has re-evaluated this original response. DED now projects the impact to be $0. This change in response from 1886-01 is based on additional input from the cycle manufacturer impacted by the SIC Code.
Officials from the Department of Revenue (DOR) state this legislation will allow certain employees of a new business facility who were residents of the enterprise zone for at least one full month from the time they were employed by the new business facility to be counted as an enterprise zone resident.
The DOR states that they do not anticipate a significant increase in the number of new credits filed. Therefore, they will not request additional FTE at this time. However, if their assumption is incorrect, the Personal Tax Bureau will need one Temporary Tax Season Employee for every 75,000 additional credits, one Tax Processing Tech I for every 30,000 additional errors generated and one Tax Processing Tech I for every 3,000 additional pieces of correspondence received regarding this credit. The Business Tax Bureau will need one Tax Processing Tech I for every 3,680 additional credits received. Any FTE needed will be requested during the normal budget process.
In response to similar legislation from this year, officials from the City of Salem stated with passage of this legislation, a new 65 room hotel facility will probably be built in their community. The City of Salem estimates the annual revenues from this facility for the city, including sales tax and increased property taxes would be roughly $11,521. The City of Salem also estimates that gross water and electric revenues for this new facility would be roughly $60,000 to the City.
ASSUMPTION (continued)
Oversight assumes the state will not be fiscally impacted from the addition of hotels in Salem to the enterprise zone definitions. Oversight assumes the local taxing and governing authorities may grant an exemption (in whole or in part) of property taxes to this new hotel after holding the required public hearings on the matter, therefore, has estimated the local impact as zero.
Oversight also assumes the expansion of the employees who count toward the residency requirement at the Harley Davidson plant in Kansas City may have a fiscal impact on the state and have used DED's original response.
Section 227.010 - 227.230 : Weekend Directional Signs on State Highways:
Officials of the Department of Highways and Transportation stated that this proposal in it's current form leaves unanswered questions regarding regulation, removal, responsibility, penalty provisions, and liability. Without clarification MoDOT officials assume a negative Unknown impact. Officials stated their assumption is due to the implied liability for any accidents caused by these signs on MoDOT's right-of-way as well as unknown employee time and expense to remove signs.
Section 82.300 - Kansas City - Property Nuisances
Officials of the Kansas City Manager's Office stated that annual revenues from property code fines average around $430,000. Officials estimate that the change in maximum fine from $500 to $1,000 for property and nuisance code violations would increase revenue to $550,000 to $575,000 annually.
Sections 214.030 and 214.035: Cemeteries
Officials from the City of Hannibal, City of Springfield, and Platte County each assume this proposal would have no substantial fiscal impact on their political subdivisions.
Officials from the Department of Natural Resources (DNR) state they are not considered a city, town, village or county. Therefore, it would not have to take ownership of abandoned cemeteries.
DNR states they do own three cemeteries, which are designated as historic sites and some of the other parks and historic sites do have cemeteries within their boundaries. However, all of these cemeteries are maintained by the Division of State Parks and are not considered abandoned.
Therefore, this legislation would not result in any fiscal impact for DNR.
ASSUMPTION (continued)
In response to similar legislation from last year, officials of the Department of Economic Development - Division of Professional Registration stated that the proposal would not affect that agency.
Oversight notes that costs to political subdivisions would only be incurred in cases where a subdivision would try to reclaim a grave. There are no provisions requiring this.
Section 67.1442 - Community Improvement Districts
City of Springfield officials assume this proposal is discretionary and would have no fiscal impact to Community Improvement Districts unless, the District Board of Directors would consent to the relocation or removal of property from one zone to another zone within the same district.
Oversight assumes this proposal is permissive and would have no fiscal impact. To remove property or relocate property from a Community Improvement District would require a hearing by the City, and approval by the District Board before any action to remove or relocate property. The district would have to meet any financial obligation excluding the revenues generated by the property being removed.
In response to identical legislation from last session the Department of Economic Development assumed no fiscal impact.
Section 67.1545 - Community Improvement District- Kansas City
Oversight assumes that this proposal adds some additional duties for Community Improvement Districts in Kansas City, whenever an election is held seeking approval of a sales tax. Current law already requires an election by mail-in ballot so there would be no new costs of having an election, other than publication requirements, along with other duties which would not have significant impact to the election authority, or to the district. Any new costs would be costs for the Community Improvement District, and Oversight assumes would not be significant. Costs would only occur on questions of sales tax approval. Oversight assumes no fiscal impact.
Section 135.406 - Small Business Tax Credits
Officials of the Department of Economic Development assume the changes in this section redirects $1 million of the Small Business Investment Tax Credit but would have no fiscal impact.
ASSUMPTION (continued)
Section 81.265 - Mayor of City of Blue Springs - Salary Requirements
Oversight determined that the current salary for the Mayor of Blue Springs is $12,000 annually. Oversight assumes that if the City of Blue Springs were to comply with the highest mandate of this proposal the increase in costs would be ($21,746 ). Oversight assumes the current salary of a legislative leadership member is $33,746 less the current salary of the Mayor of $12,000 would equal $21,746. Oversight will show cost to the City of Blue Springs of $21,746.
| FISCAL IMPACT - State Government | #FY 2002
(10 Mo.) |
#FY 2003 | #FY 2004 |
| ROAD FUND | |||
| Cost to Department of Transportation | |||
| from weekend Directional Signs | |||
| (Section 227.010 - 227.230) | (Unknown) | (Unknown) | (Unknown) |
| GENERAL REVENUE | |||
| Cost - Business Facility Tax Credit | |||
| ( Section 135.230) | $0 to ($200,000) | $0 to ($200,000) | $0 to ($200,000) |
| ESTIMATED NET EFFECT TO STATE FUNDS | (Unknown) | (Unknown) | (Unknown) |
| FISCAL IMPACT - Local Government | #FY 2002
(10 Mo.) |
#FY 2003 | #FY 2004 |
| Cost to City of Blue Springs | |||
| for increase in Mayor's salary | |||
| (Section 81.265) | ($18,122) | ($21,746) | ($21,746) |
| Income to Kansas City | |||
| from increase in code violation fines. | |||
| (Section 82.300) | $100,000 to $120,833 | $120,000 to $145,000 | $120,000 to $145,000 |
| ESTIMATED NET EFFECT TO LOCAL GOVERNMENTS | $81,878 to $102,711 | $98,254 to $123,254 | $98,254 to $123,254 |
FISCAL IMPACT - Small Business
Section 135.200 would fiscally impact those small businesses that are now eligible for the tax credits outlined in this proposal.
DESCRIPTION
The act changes several provisions relating to political subdivisions.
PUBLIC NUISANCE - The act allows Jefferson County to enact ordinances to reduce conditions on property which constitute a public nuisance. The ordinances may state that if the owner does not remove the nuisance within 7 days of notice, the building commissioner may have the condition eliminated. Cost will be certified to the county clerk or officer in charge of finance and considered added to the annual real estate tax bill for that property as a personal debt of the owner. (Section 67.398)
Kansas City is authorized to enact nuisance and property maintenance code ordinances to protect public and private property. Any violation of such ordinance will result in a fine not to exceed $1000.00 or imprisonment not to exceed twelve months, or both. (Section 82.300)
COMMUNITY IMPROVEMENT DISTRICTS - The act authorizes the removal of property from the Springfield Community Improvement District, or relocation of property from a certain zone of designation in the CID to a different zone. A public hearing must be conducted and have approval of the board. The district must be able to meet its financial obligations without the
revenues from the proposed portion to be removed. (Section 67.1442)
The act describes additional notice requirements for Community Improvement Districts that submit a sales tax to the voters of the district including; publishing notice of the election, providing mail-in ballots, mailing notice of election to all registered voters and real property owners. (Section 67.1545)
MAYORAL SALARY - Requires the city of Blue Springs to pay the mayor a salary that is not less than any General Assembly member's compensation. (Section 81.265)
DESCRIPTION
ENTERPRISE ZONE - Adds hotels and motels operated in Salem (Dent County) to the list of businesses and activities which qualify as a "revenue-producing enterprise" for purposes of enterprise zone tax relief laws. (Section 135.200)
TAX CREDITS - Current law requires that fifteen percent (15%) of the employees of a "new business facility described as Standard Industrial Classification (SIC) 3751" must meet certain eligibility requirements in order for the new business facility to be granted the tax credits and exemptions available to a business located within an Enterprise Zone. Currently, the
Harley-Davidson plant in Kansas City is the only SIC 3751 business located in the state of Missouri.
The act broadens the class of employees who count toward achieving the fifteen-percent requirement, in that it allows Harley-Davidson to count current employees who resided within the Enterprise Zone on the initial date of their employment and for 90 days thereafter regardless of whether the employee continues to reside within the Enterprise Zone on the date of the count, as long as the employee continues to reside in Missouri. (Section 135.230)
Limits the total amount of Missouri small business tax credits at one million dollars ($1 M) for certain enterprises. (Section 135.406)
PUBLIC CEMETERIES - The act provides that abandoned public cemetery lots revest to the public cemetery. In order to qualify as abandoned, the title of the lot must be vested in the owner for at least fifty years.
The governing body of the cemetery must serve notice upon the lot owner if the lot owner is a resident of the county in which the cemetery is located. If the lot owner is not a resident of the county in which the cemetery is located, the governing body may have the notice published for two weeks in a newspaper of general circulation within the county. If no one claims to be the lot owner within the time specified on the summons or published notice, the cemetery lot will be
deemed abandoned and the governing body may bring an action in the appropriate circuit court to terminate the rights of the parties, in such court, and the abandoned cemetery lots revert to the governing body of the cemetery. This act does not apply to any lot in any cemetery where a perpetual care contract has been entered into by the lot owner and the cemetery, county, city, town or village. (Section 214.030)
WEEKEND DIRECTIONAL SIGNS - Authorizes any person in St. Louis City, St. Louis County, Jefferson County, Warren County, St. Charles County and Franklin County to erect weekend directional signs for advertising the sale of or lease of private property without consent from the State Highways and Transportation Commission. (Sections 227.010 and 227.230 )
DESCRIPTION
PUBLIC WATER SUPPLY DISTRICTS - This portion of the act provides for the ability to enter into an agreement and the resolution of disputes regarding provision of water service to property annexed into a political subdivision that is also located in a water district which does not currently receive water service from the political subdivision or water district. (Section 247.165)
LIMITED LIABILITY - Any limited liability company that owns unoccupied property located in Kansas City will file with the City Clerk the name and address of a contact person for that property. (Section 347.189)
SOURCES OF INFORMATION
Department of Natural Resources
Missouri Department of Transportation
Department of Revenue
Department of Economic Development
Kansas City Manager's Office
City of Springfield
City of Blue Springs
Director of Administration- St. Louis County
City of Hannibal
Platte County Commission
City of Salem
Jeanne Jarrett, CPA
Director
April 27, 2001