COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3934-01

Bill No.:          HB 1766

Subject:           County Collectors: Taxation and Revenue, Collections

Type:              Original

Date:               February 5, 2008

Bill Summary:            Requires counties to allow for the quarterly payment of real and personal property taxes.

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

Officials of the Missouri State Tax Commission assume no fiscal impact to the Commission.

The Clay County Collector estimates cost at $400,000 if they would start billing and mailing for partial quarterly payments of taxes. Officials stated they would have additional costs for printing of materials.

The Boone County Collector assumes that to collect taxes on a quarterly basis would have costs but are unable to estimate the amount.

The Callaway County Collector assumes they would have costs for software that would range from $3,000 to $5,000, if they were to collect taxes on a quarterly basis.

The St. Louis County Collector stated that they already provide this service by County Code 502.600. Officials assume no fiscal impact.

Oversight assumes that county governing bodies currently have the authorization at their discretion to initiate a system of collection of personal and real property taxes on either an annual, semiannual, or quarterly basis. Oversight assumes this proposal mandates counties to initiate a system of collection of current real and personal property taxes on a quarterly basis.

Oversight assumes, based on the information provided by county collectors that responded, that some counties would have no fiscal impact because they currently collect taxes either on a monthly basis, or a quarterly basis. The counties which provide these collection services are larger counties. Oversight assumes, based on information supplied, that smaller counties would realize additional costs to initiate the provisions of this proposal. Of the collectors that responded from smaller counties, all stated they would have costs of equipment, programming, software, printing, postage, and in some cases additional staff.

Oversight will show fiscal impact to local governments on a statewide basis as $0 or (Unknown). Oversight assumes no state fiscal impact.

* Costs to counties, on a statewide basis, would be expected to exceed $100,000 annually.

FISCAL IMPACT - Small Business

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

FISCAL DESCRIPTION

This bill requires counties to accept quarterly payments of real and personal property taxes.

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

Missouri State Tax Commission

Callaway County Collector of Revenue

Boone County Collector of Revenue

St. Louis County Collector of Revenue

Clay County Collector of Revenue

NOT RESPONDING

Greene County Collector

Jackson County Finance Department

Cole County Collector

Franklin County Collector

Cooper County Collector

Carroll County Collector

Cape Girardeau County Collector

Butler County Collector

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 5, 2008