COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3894S.01I Bill No.:SB 759 Subject:Taxation and Revenue - Sales and Use; Political Subdivisions; Cities, Towns and
Villages
Type:Original Date:January 25, 2022Bill Summary:This proposal modifies provisions relating to local sales taxes.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
Total Estimated Net
Effect on General
Revenue*
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
*The proposal would place a limit on the combined sales tax rate of local political subdivisions
(cities, counties, other). Oversight will reflect a possible positive unknown amount of sales taxes
(as well as DOR 1% collection fee) collected from 32.087.3(2) – allowing additional sales taxes
if approved by voters in future elections. Oversight assumes this additional DOR collection fee
revenue could eventually reach the $250,000 threshold
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 3894S.01I
Bill No. SB 759
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0 or Unknown$0 or Unknown$0 or Unknown L.R. No. 3894S.01I
Bill No. SB 759
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FISCAL ANALYSIS
ASSUMPTION
32.087 Local Political Subdivision Tax Rate Limits
Officials from the Office of Administration Budget & Planning (B&P) assume that Section
32.087 may reduce TSR by an unknown amount. Section 32.087 may reduce the calculation
under Article X, Section 18(e) by an unknown amount. B&P is unsure how many jurisdictions
are higher than the allowable caps and defers to locals for more information.
Oversight notes that officials from B&P defer to locals for the potential fiscal impact of this
proposal. Oversight also notes Section 32.087.3(5)(b) states that no taxing jurisdiction with a
combined sales tax in excess of the rates provided as of August 28, 2022 shall be required to
reduce or repeal any such sales tax rate. Oversight assumes this proposal will not negatively
impact local political subdivisions.
Officials from the Department of Revenue (DOR) assume Section 32.087.3(2) would limit the
local sales tax rate in political subdivisions starting January 1, 2023, and would allow any taxing
jurisdiction to impose a sales tax as long as it is approved at a state general election.
Additionally, this sets a limit to the combined sales tax imposed starting January 1, 2023, in a
jurisdiction. Should two or more sales taxes be passed that cause a district to exceed the
combined limit, the proposal provides a method for determining which sales/use tax would be
kept.
DOR notes if a political subdivision chooses to not adopt additional sales taxes, then this
proposal will not have a fiscal impact. Should a political subdivision choose to adopt a new sales
tax, then the political subdivision will receive increased revenue. It should be noted that should
they adopt a sales tax and DOR is required to collect and distribute the sales tax to the political
subdivision DOR will retain 1% of the sales tax for reimbursement of DOR’s expenses. DOR is
not able to predict if any political subdivisions will adopt a new sales tax. The impact of this
proposal is $0 to Unknown.
Oversight will reflect a potential positive impact from section 32.087.3(2) if this allows local
political subdivisions to submit before its voters an additional sales tax in future elections.
Oversight will show this as a $0 (no such tax increase is submitted to voters or voters do not
approve the measure) to an unknown amount of sales tax revenue for the local political
subdivision (and DOR retaining a 1% collection fee). L.R. No. 3894S.01I
Bill No. SB 759
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Officials from the Kansas City BEC
portion of Jackson County is $625,000. The State will pay their prorated share of the cost based
on who else participates. This amount would range between $0 and $625,000.
Officials from the Missouri Department of Transportation, Missouri Department of
Conservation, Department of Natural Resources, Department of Elementary and
Secondary Education, Platte County, St Louis County and Jackson County each assume the
proposal will have no fiscal impact on their organization.
Officials from the Office of the Secretary of State notes many bills considered by the General
Assembly include provisions allowing or requiring agencies to submit rules and regulations to
implement the act. The Secretary of State's office is provided with core funding to handle a
certain amount of normal activity resulting from each year's legislative session. The fiscal impact
for this fiscal note to Secretary of State's office for Administrative Rules is less than $5,000. The
Secretary of State's office recognizes that this is a small amount and does not expect that
additional funding would be required to meet these costs. However, SOS recognizes that many
such bills may be passed by the General Assembly in a given year and that collectively the costs
may be in excess of what the office can sustain with the core budget. Therefore, SOS reserves
the right to request funding for the cost of supporting administrative rules requirements should
the need arise based on a review of the finally approved bills signed by the governor.
Oversight assumes the SOS could absorb the costs of printing and distributing regulations
related to this proposed legislation. If multiple bills pass which require the printing and
distribution of regulations at substantial costs, the SOS could request funding through the
appropriations process.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties, schools, and universities were requested to respond to this
proposed legislation but did not. A general listing of political subdivisions included in
Oversight’s database is available upon request.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUE Potential Revenue – DOR 1%
collection fee for new sales tax
authorized in 32.087.3(2) p.3
$0$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 $0 or
Unknown
$0 or
Unknown L.R. No. 3894S.01I
Bill No. SB 759
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FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
Potential Revenue – new sales taxes
authorized in 32.087.3(2) p.3$0
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 $0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – Small Business
This proposal may have a direct fiscal impact on the small business that pay and/or collect sales
tax.
FISCAL DESCRIPTION
In addition to any local sales tax imposed or authorized to be imposed as of January 1, 2023, this
act authorizes any taxing jurisdiction to impose one or more sales taxes for purposes to be
designated by the taxing jurisdiction, provided that the total combined rate of local sales taxes
imposed and retained by a taxing entity that is an incorporated city, town, or village shall not
exceed 4.5%; the total combined rate of local sales taxes imposed and retained by a county shall
not exceed 4.5%; the total combined rate of local sales taxes imposed and retained by the City of
St. Louis shall not exceed 9.0%; and for all other taxing jurisdictions, the total combined rate of
sales taxes in any given taxing jurisdiction shall not exceed 3.0%.
In any election in which more than one sales tax levy is approved by the voters, and the passage
of such levies results in a combined rate of sales tax in excess of the limits provided under the
act, only the sales tax levy receiving the most votes shall become effective.
No taxing jurisdiction with a combined rate of sales tax in excess of the rates provided in the act
as of August 28, 2022, shall be required to reduce or repeal any such sales tax rate.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 3894S.01I
Bill No. SB 759
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SOURCES OF INFORMATION
Office of Administration - Budget and Planning
Missouri Department of Transportation
Missouri Department of Conservation
Department of Natural Resources
Office of the Secretary of State
Department of Elementary and Secondary Education
Department of Revenue
Jackson County
Platte County
St Louis County
Kansas City BEC
Julie MorffRoss StropeDirectorAssistant DirectorJanuary 25, 2022January 25, 2022