COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3751-01

Bill No.:          HB 1465

Subject:           Counties: Property Tax Collection

Type:              Original

Date:               January 30, 2008

Bill Summary:            Allows taxpayers to pay real property taxes in quarterly installments.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

The Cole County Collector of Revenue stated that their programmer estimates a minimum cost of $8,000 to reconfigure their system. Officials stated there are many unknowns such as do they mail out quarterly statements, etc. but assume there would be costs associated with staff time, postage, printing, etc.

Oversight sent response request to many County Collectors/Clerks and only one responded.

Oversight assumes this proposal is not permissive and requires counties to establish a system of quarterly collections. Many counties, especially smaller counties would have costs associated with programming changes, staff time, postage, printing, and additional accounting duties.

Oversight not being able to estimate costs to counties on a statewide basis will show costs to counties as unknown, and expect costs to exceed $100,000.

Oversight assumes subsection 6 of Section 139.052 would allow County Commissions to assess a surcharge as a cost for accepting quarterly payments. The surcharge could not exceed two percent of the taxpayer’s real property tax liability in the previous year. Oversight is not able to estimate the number of counties that would assess the surcharge, nor the amount the surcharge would generate, on a statewide basis. Therefore, Oversight will show income to counties as a positive unknown, and would expect the income to exceed $100,000 annually.

Oversight will show fiscal impact as zero, based on the assumption that the income generated would offset the costs generated.

Oversight assumes there would be no state costs.

*Oversight assumes county governing bodies would assess a surcharge, (that could not exceed 2% of the taxpayer’s previous years tax liability), in an amount that would be sufficient to cover the added costs associated with collecting property taxes on a quarterly basis. Costs and income are indeterminable, and will be shown as unknown, and for the purposes of this fiscal note, the estimated net effect will be shown as zero.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

This bill allows taxpayers to pay real property taxes in quarterly installments by estimating the amount due based on their previous tax year's real property tax liability. At the end of the year, the taxpayer will either pay any amount owed in excess of the estimated quarterly payments or the county will refund any amount paid in excess. The county may assess a surcharge of up to 2% of the taxpayer's real property tax liability in the previous year as the cost for accepting quarterly payments.

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

Cole County Collector

NOT RESPONDING

Boone County Collector

Callaway County Collector

Greene County Collector

Jackson County Finance Department

Cape Girardeau County Clerk

Cass County Clerk

Jefferson County Clerk

Nodaway County Clerk

Marion County Clerk

Platte County Clerk

Pulaski County Clerk

Sullivan County Clerk

Taney County Clerk

Texas County Clerk

Webster County Clerk

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                January 30, 2008