COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4250-01

Bill No.:          SB 939

Subject:           Levee Districts: Taxes

Type:              Original

Date:               February 7, 2008

Bill Summary:            Permits a levee district to levy a uniform tax of not more than eight dollars per acre upon each acre of land rather than one dollar per acre.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 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 Department of Natural Resources - State Parks Division stated that this proposal would allow levee districts to levy a uniform tax of not more than eight dollars per acre/mile rather than one dollar per acre/mile. The Department's Division of State Parks has a total of 655.44 acres in four different levee districts, and 2.14 miles in two different levee districts, which excludes Ste. Genevieve county (the levee districts in Ste. Genevieve county levy taxes by parcel, not by acres nor miles).

Depending on each levee district's decision, the fiscal impact on the division will be from $0 (no levee districts increase their tax) to $4,603.06 (if all levee districts increase their uniform tax by $7... ($7 * 655.44 acres + $7 * 2.14 miles = $4,603.06)).

Oversight assumes this proposal increases the cap on the amount of uniform tax levy that the board of supervisors of levee districts could levy on per acre of land and on each mile of right-of-way of all public service corporations within the levee district. Oversight assumes this proposal as written does not require boards to increase their levies, but allows them to do so at their discretion. Oversight will show fiscal impact as $0 to Unknown costs to local governments that might have property within a levee district. Unknown costs would depend on whether the board of supervisors would increase the levy per acre.

* Costs, if any, would depend on action of the levee district’s board of supervisors.

* Costs to local governments would depend on whether they would have improvements or property within a levee district, and if the levee district board of supervisors would increase the tax per acre or per mile of right-of-way.

FISCAL IMPACT - Small Business

Small business that would be located within a levee district would be expected to pay any increase in the tax, but only if the board of supervisors were to increase the tax allowed.

FISCAL DESCRIPTION

Currently, the board of supervisors of a levee district must levy a uniform tax of not more than one dollar per acre upon each acre of land and each mile of right-of-way of all public service corporations within such district. The tax is used to pay expenses incurred or to be incurred.

This act would require a levee district to levy such a tax for not more than eight dollars.

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 Natural Resources

            State Parks Division

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 7, 2008