COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 3721-02
Bill No.: SB 902
Subject: Revenue and Taxation - Property; Real and Personal Property
Type: Original
Date: January 22, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| General Revenue * | $0 | (Unknown) | (Unknown) |
| Senior Property Tax Deferral Revolving * | $0 | Unknown | Unknown |
| Total Estimated
Net Effect on All State Funds * |
$0 | (Unknown) | (Unknown) |
* Expected to exceed $100,000 per year.
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Counties | $0 | (Unknown) | (Unknown) |
| Local Government * | $0 | (Unknown) | (Unknown) |
* expected to total more than $100,000 per year.
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ASSUMPTION
Officials from the State Treasurer's Office assume this proposal would have no impact on their organization.
Officials from the Office of Administration, Division of Budget and Planning defer to the State Tax Commission's estimate of the impact of this proposal.
Officials from the State Tax Commission assume no fiscal impact to their agency from this proposal. The State Tax Commission assumes there will be a definite but unknown fiscal impact to local governments from this proposal.
Officials from the Department of Revenue were unable to respond.
Oversight assumes that approximately 24.4 percent of owner-occupied residences are owned by persons over 61 years of age, and that 38.1 percent would have household income less than the upper limit of $32,000 per year. However, Oversight assumes it is not possible to estimate the number of persons who would actually apply for this tax deferral. Oversight also assumes the first impact of this proposal would be 2003 taxes normally collected in FY 2004.
Oversight assumes the Department of Revenue would have significant unknown costs for the administration of this proposal due to the requirement for that department to process payments to the counties for deferrals, and to maintain an individual account for each deferral. Oversight assumes the expected payments from the revolving account to county collectors beginning in FY 2004 would require transfers from the General Revenue fund for several years, the first reimbursement could be received in FY 2005, but that the eventual repayment of those advances would require several additional years. Oversight assumes the transfers from the General Revenue Fund to the revolving account would exceed reimbursements from the revolving account to provide for administrative costs, and to establish a reserve for administrative costs as authorized in the proposal. Oversight also assumes that county assessors, clerks, collectors, and recorders would have significant but unknown additional costs as a result of this proposal.
| FISCAL IMPACT - State Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| GENERAL REVENUE | |||
| Transfer - from revolving account | $0 | $0 | Unknown |
| Transfer - to revolving account * | $0 | (Unknown) | (Unknown) |
| NET EFFECT ON GENERAL REVENUE FUND * |
$0 |
(Unknown) |
(Unknown) |
| * expected to exceed $100,000 per year. | |||
| SENIOR PROPERTY TAX DEFERRAL REVOLVING ACCOUNT | |||
| Revenues - collections of deferred taxes | $0 | $0 | Unknown |
| Transfer - from General Revenue Fund * | $0 | Unknown | Unknown |
| Cost - Department of Revenue | |||
| Personal Service | $0 | (Unknown) | (Unknown) |
| Fringe Benefits | $0 | (Unknown) | (Unknown) |
| Expense and Equipment | $0 | (Unknown) | (Unknown) |
| Reimbursements - to county collectors * | $0 | (Unknown) | (Unknown) |
| NET EFFECT ON SENIOR PROPERTY TAX DEFERRAL REVOLVING ACCOUNT * |
$0 |
Unknown |
Unknown |
| * expected to exceed $100,000 per year. |
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| POLITICAL SUBDIVISIONS | |||
| Cost - County assessors | $0 | (Unknown) | (Unknown) |
| Cost - County clerks | $0 | (Unknown) | (Unknown) |
| Cost - County collectors | $0 | (Unknown) | (Unknown) |
| Cost - County recorders | $0 | (Unknown) | (Unknown) |
| NET EFFECT ON POLITICAL SUBDIVISIONS * |
$0 |
(Unknown) |
(Unknown) |
* expected to exceed $100,000 per year in total.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal would create a senior citizen's property tax deferral. Homeowners sixty-two and over with family income under a maximum limit of $32,000 per year may claim a deferral of property taxes provided there is an equity interest in the principal residence. The Director of Revenue would reimburse the deferred taxes to the county collector. The Director of Revenue would maintain a separate account for each deferral. The deferred taxes would become a lien on the property and would bear interest at six percent per annum. The lien could be foreclosed by the Director, and the deferred taxes would become due and payable on the death of the owner. A "Senior Property Tax Deferral Account" would be created in the state treasury.
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
State Treasurer's Office
Office of Administration
Division of Budget and Planning
State Tax Commission
NOT RESPONDING
Department of Revenue
Boone County
Cole County
Platte County
Mickey Wilson, CPA
Acting Director
January 22, 2002