COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4572S.01I Bill No.:SB 966 Subject:Taxation and Revenue - Sales and Use; Political Subdivisions; Fire Protection;
Ambulances and Ambulance Districts
Type:Original Date:March 29, 2022Bill Summary:This proposal authorizes certain fire protection districts and ambulance
districts to propose a 1.0% sales tax
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue *
$0$0 or Up to $893,563$0 or Up to $893,563
Total Estimated Net
Effect on General
Revenue
$0$0 or Up to $893,563$0 or Up to $893,563
*This proposal increases the top sales tax rate that can be approved for ambulance districts and
fire protection districts (from 0.5% to 1%) – the amount above represents the 1% collection fee if
every district that currently collects a sales tax gets voter approval to raise the sales tax rate to the
new ceiling (1%).
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. 4572S.01I
Bill No. SB 966
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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
$0 or Up to
$89,356,335
$0 or Up to
(Unknown)
*This proposal increases the top sales tax rate that can be approved for ambulance districts and
fire protection districts (from 0.5% to 1%) - this amount represents the increase in collections
(less the 1% collection fee) if every district that currently collects a sales tax gets voter approval
to raise the sales tax rate to the new ceiling (1%). The potential for a net negative impact for
ambulance districts and/or fire protection districts would only be possible the year after the
approval/implementation of the increased sales tax rate. L.R. No. 4572S.01I
Bill No. SB 966
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FISCAL ANALYSIS
ASSUMPTION
Section 321.552 Ambulance and Fire Protection District Sales Tax
Officials from the Office of Administration - Budget and Planning defer to the ambulance and
fire districts for the anticipated fiscal impact. DOR’s retained collection fee will increase TSR
because DOR will be able to collect its 1% administration fee for handling the collection of the
tax.
Officials from the Department of Revenue (DOR) assume this proposal would allow any
governing body of an ambulance or fire protection district to impose a sales tax in an amount up
to one percent on all retail sales made in such district. Previously the cap was at one-half of one
percent. This proposal would not allow the districts in Cape Girardeau, Christian, Cole, Clay,
Greene, Jackson, Jefferson, St. Charles County, and St. Louis City to increase their rates. In
order to increase the sales tax the district would be required to hold an election and notify the
Department of the increase. If the election were held in November 2022, then the tax would not
be collected until June 2023 (FY 2023) and remitted to the Department until FY 2024.
Currently the following districts have a sales tax. Using information on the amount of sales tax
DOR collects from these districts, DOR calculated how much additional revenue would be raised
by the districts if all raised their sales tax to the maximum 1% allowed by this proposal. L.R. No. 4572S.01I
Bill No. SB 966
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Political Subdivision0.0050.00250.003750.0045NOEL T ADAMS
AMBULANCE DISTRICT $606,042.36
BARTON COUNTY
AMBULANCE DISTRICT $655,065.39
WARSAW-LINCOLN
AMBULANCE DISTRICT $930,305.39
MARIES-OSAGE
AMBULANCE DISTRICT $208,836.79
MILLER COUNTY
AMBULANCE DISTRICT $1,802,401.14
SAINT JAMES
AMBULANCE DISTRICT $411,059.60
IRON COUNTY
AMBULANCE DISTRICT $861,653.82
CAM-MO AMBULANCE
DISTRICT $1,036,918.06
DADE COUNTY
AMBULANCE DISTRICT $300,856.68
SALT RIVER
AMBULANCE DISTRICT $242,091.45
OSAGE AMBULANCE
DISTRICT $445,275.70
STEELVILLE
AMBULANCE DISTRICT $256,704.85
ST FRANCOIS COUNTY
AMBULANCE DISTRICT $4,941,541.11
CALLAWAY COUNTY
AMBULANCE DISTRICT $2,249,091.99
CEDAR COUNTY
AMBULANCE DISTRICT $631,689.36
HERMANN AREA
AMBULANCE DISTRICT $488,144.21
AVA AMBULANCE
DISTRICT $572,603.00
RANDOLPH COUNTY
AMBULANCE DISTRICT $1,765,185.14
WASHINGTON COUNTY
AMBULANCE DISTRICT $1,032,860.48
ADAIR COUNTY
AMBULANCE DISTRICT
$1,491,354.79
LINN COUNTY
AMBULANCE DISTRICT $713,418.15 L.R. No. 4572S.01I
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PULASKI COUNTY
AMBULANCE DISTRICT $2,243,756.99
WASHINGTON AREA
AMBULANCE DISTRICT
$2,129,345.41
MERAMEC AMBULANCE
DISTRICT $1,086,204.72
MID-MO AMBULANCE
DISTRICT $2,085,698.91
STE GENEVIEVE
COUNTY AMBULANCE
DISTRICT $994,056.60
MARION COUNTY
AMBULANCE DISTRICT $2,564,835.36
NEW MADRID COUNTY
AMBULANCE DISTRICT $1,761,432.71
ST CLAIR AMBULANCE
DISTRICT $553,713.86
MONROE CITY
AMBULANCE DISTRICT $246,420.24
OWENSVILLE AREA
AMBULANCE DISTRICT $519,082.58
RAY COUNTY
AMBULANCE DISTRICT $883,486.52
COLE CAMP
AMBULANCE DISTRICT $142,632.30
NEW HAVEN
AMBULANCE DISTRICT $195,413.63
CALDWELL COUNTY
AMBULANCE DISTRICT $325,667.86
LINCOLN COUNTY
AMBULANCE DISTRICT $3,475,072.44
NODAWAY COUNTY
AMBULANCE DISTRICT $1,431,741.79
TANEY COUNTY
AMBULANCE DISTRICT
$5,187,338.89
ANDREW COUNTY
AMBULANCE DISTRICT $584,406.41
NORTH CRAWFORD
COUNTY AMBULANCE
DISTRICT $854,727.81
OREGON COUNTY
AMBULANCE DISTRICT $505,368.53 L.R. No. 4572S.01I
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COOPER COUNTY
AMBULANCE DISTRICT $543,832.36
OZARK COUNTY
AMBULANCE DISTRICT $393,514.71
VAN-FAR AMBULANCE
DISTRICT $142,427.21
AUDRAIN AMBULANCE
DISTRICT $1,176,353.37
LEWIS COUNTY
AMBULANCE DISTRICT $377,871.20
GERALD AREA
AMBULANCE DISTRICT $232,879.14
PETTIS COUNTY
AMBULANCE DISTRICT $3,636,158.17
CAMERON AMBULANCE
DISTRICT $791,440.96
TRI-COUNTY
AMBULANCE DISTRICT $412,508.27
SOUTH BARRY COUNTY
AMBULANCE DISTRICT $1,059,300.69
CLARK COUNTY
AMBULANCE DISTRICT $433,921.06
UNION AMBULANCE
DISTRICT $1,440,911.12
REYNOLDS COUNTY
AMBULANCE DISTRICT $611,920.82
BARRY LAWRENCE
COUNTY AMBULANCE
DISTRICT $1,225,312.43
SOUTH HOWELL
COUNTY AMBULANCE
DISTRICT $2,194,031.52
MADISON COUNTY
AMBULANCE DISTRICT $627,063.69
RIPLEY COUNTY
AMBULANCE DISTRICT $390,678.59
NORTH SCOTT COUNTY
AMBULANCE DISTRICT $633,264.77
SCOTLAND COUNTY
AMBULANCE DISTRICT $307,138.83
SOUTH SCOTT COUNTY
AMBULANCE DISTRICT $ 95,742.83 L.R. No. 4572S.01I
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SOUTHERN STONE FIRE
PROTECTION DISTRICT $2,449,508.28
ORRICK FIRE
PROTECTION DISTRICT $51,491.86
SOUTH METROPOLITAN
FIRE PROTECTION
DISTRICT $1,857,564.62
SULLIVAN FIRE
PROTECTION DISTRICT $1,330,093.43
ST CLAIR FIRE
PROTECTION DISTRICT $554,479.25
BOURBON FIRE
PROTECTION DISTRICT $172,806.64
UNION FIRE
PROTECTION DISTRICT $1,433,011.80
PLEASANT HILL FIRE
PROTECTION DISTRICT $490,555.55
LINCOLN COUNTY FIRE
PROTECTION DISTRICT 1 $900,905.69 $66,128,320.43
$5,731,171.25
$3,620,700.20 $ 0
DOR is allowed to retain 1% for collection costs, so this would be an increase to General
Revenue of $893,563 if all the subdivisions raised the tax to the maximum allowed.
1%
CollectionsDOR Fee
District
CollectionsNet Increase
0.0025$22,924,685$229,247$22,695,438$17,193,5140.00375$9,655,201$96,552$9,558,649$6,034,5000.0045$0$0$0$00.005$132,256,641$1,322,566$130,934,074$66,128,3200.01$164,836,526$1,648,365$163,188,161$89,356,335
This would impact General Revenue $0 to $893,563 starting in FY 2024.
This would impact local political subdivisions $0 to $89,356,335 starting in FY 2024.
DOR notes this will not have a fiscal impact on DOR to administer.
Oversight notes Section 321.552.3. Denotes “the fire protection district “shall lower the level of
its tax rate by an amount which reduces property tax revenues by an amount equal to fifty
percent of the amount of sales tax collected in the preceding year.” Oversight provides an
example of such a reduction on next page: L.R. No. 4572S.01I
Bill No. SB 966
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Oversight shows the reduction of the property tax reduction consequence below:
Up to 1%
revenue
Increase by less than
1%
New Proposal
add up to 1%$1,000 New Proposal .825%$825
Current
Collection .5%($500)Current Collection .5%$500
Difference
(gain)$500 Difference (gain)$325
Next year
property
reduction of the
amount that the
sales tax were
increased (1/2 of
$1000)($500)
Next year property reduction of
the amount that the sales tax
were increased (1/2 of $825)($412.50)
Net Gain
(revenues) for
Locals
following year$0
Net loss (revenues) for Locals
following year($87.50)
Oversight notes that increase in sales tax coupled with decrease of property tax in the preceding
year could potentially negate any gains for the fire districts or, unless the jurisdictions implement
the full 1% increase available to them, it could lead to further loss of revenue in proceeding
years.
Therefore, Oversight will note the 1% collection fee gain in GR and Local Governments due to
the gain in first year of the implementation and $0 (gain of revenues for localities who choose to
increase the sales tax up to 1%) to (Unknown) (loss of revenues for localities who choose to
increase the sales tax to less than 1%) impact on the fiscal note in future years.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS 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 the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also 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 its core budget. Therefore, the SOS reserves the right to request funding L.R. No. 4572S.01I
Bill No. SB 966
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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.
Officials from the Kansas City BEC note the cost to conduct an election in the Kansas City
portion of Jackson County is $625,000. The State would pay it's pro rata share based on voter
registration.
Officials from the Office of Administration, Missouri Department of Transportation,
Department of Natural Resources, Missouri Department of Conservation, Jackson County,
Platte County, and St Louis County each assume the proposal will have no fiscal impact on
their organization.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other counties, ambulance & EMS and fire protection districts were requested to
respond to this proposed legislation but did not. A listing of political subdivisions included in the
Missouri Legislative Information System (MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUERevenue Gain - DOR 1% collection fee
p. 3-7 $0
$0 or Up to
$893,563
$0 or Up to
$893,563
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND$0
$0 or Up to
$893,563
$0 or Up to
$893,563 L.R. No. 4572S.01I
Bill No. SB 966
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FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025LOCAL POLITICAL
SUBDIVISIONS
Revenue Gain & Loss - Sales Tax
Disbursement to Fire Protection
Districts and/or Ambulance Districts -
§321.552 p. 3-7
$0
$0 or Up to
$89,356,335
$0 or Up to
(Unknown)
ESTIMATED NET EFFECT TO
LOCAL POLITICAL
SUBDIVISIONS
$0
$0 or Up to
$89,356,335
$0 or Up to
(Unknown)
FISCAL IMPACT – Small Business
Small businesses in districts where the tax is increased will be impacted by paying the higher tax.
FISCAL DESCRIPTION
Current law authorizes ambulance and fire protection districts in certain counties to propose a
sales tax at a rate of up to 0.5%. This act allows such districts to propose a sales tax of up to
1.0%.
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
Office of Administration
Missouri Department of Transportation
Department of Natural Resources
Missouri Department of Conservation
Office of the Secretary of State
Office of Administration - Budget and Planning
Department of Revenue
St Louis County
Jackson County
Platte County
Kansas City BEC L.R. No. 4572S.01I
Bill No. SB 966
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Julie MorffRoss StropeDirectorAssistant DirectorMarch 29, 2022March 29, 2022