COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0733H.01I Bill No.:HB 247 Subject:Taxation and Revenue - Sales and Use; Political Subdivisions; Fire Protection;
Cities, Towns, and Villages
Type:Original Date:March 3, 2023Bill Summary:This proposal authorizes cities and fire protection districts to impose a public
safety sales tax.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue*$0 to Unknown $0 to Unknown $0 to Unknown Total Estimated Net
Effect on General
Revenue$0 to Unknown $0 to Unknown $0 to Unknown
* Represents the potential 1% Department of Revenue collection fee, if voters approve the sales
tax(es). Oversight assumes the revenue collected from the collections fees will not
$250,000 threshold.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 0733H.01I
Bill No. HB 247
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2024FY 2025FY 2026Total 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 2024FY 2025FY 2026Local Government$0 to Unknown$0 to Unknown$0 to Unknown L.R. No. 0733H.01I
Bill No. HB 247
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FISCAL ANALYSIS
ASSUMPTION
Sections 94.900, 94.902 & 94.903 Repealed
Officials from the Department of Revenue (DOR) state currently these statutes allow certain
delineated cities to adopt a sales tax for the purpose of public safety. These sections identify
those cities. This proposal is removing the individual sections and replacing with Section 94.905
which allows all cities to have the sales tax. This provision is cleanup language and will not
have a fiscal impact.
Section 94.905 Public Safety Sales Tax
DOR notes this proposal will allow any city to adopt a sales tax up to one-half of one percent for
the purpose of public safety. The election for the sales tax must be at a county or state general
election. Currently, in order for a city to have a sales tax for public safety the General Assembly
must adopt legislation giving them authority. This proposal will give blanket authority to all
cities.
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. The Department is not able to predict if any
political subdivisions will adopt a new sales tax. The impact of this proposal is $0 to Unknown.
Section 144.518 Coin Operated Amusement Devices
DOR notes Section 144.518 is amended to remove Section 321.242, which was a tax exemption
from collection on sales collected from coin-operated amusement devices. The legislation
repeals Section 321.242 which provided the particular city descriptions who could impose a fire
protection district sales tax and because Section 321.242 would be repealed it would need to be
removed from the coin-operated amusement device sales tax exemptions under Section 144.518.
This provision is cleanup language and will not have a fiscal impact.
Section 321.244
DOR notes this provision is cleanup language and will not have a fiscal impact.
Section 321.900 Fire Protection District Sales Tax
DOR notes this proposal will allow any fire protection district to adopt a sales tax up to one-half
of one percent. The election for the sales tax must be at a county or state general election. L.R. No. 0733H.01I
Bill No. HB 247
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Currently, in order for a fire protection district to have a sales tax the General Assembly must
adopt legislation giving them authority. This proposal will give blanket authority to all fire
protection districts.
If a fire protection district chooses to not adopt additional sales taxes, then this proposal will not
have a fiscal impact. Should a fire protection district choose to adopt a new sales tax, then the
fire protection district will receive increased revenue. It should be noted that if they adopt a sales
tax and DOR is required to collect and distribute the sales tax to the district, DOR will retain 1%
of the sales tax for reimbursement of their expenses. The Department is not able to predict if any
fire protection districts will adopt a new sales tax. The impact of this proposal is $0 to
Unknown.
Section 321.242 & 321.246 Repealed
DOR notes currently these statutes allow certain delineated fire protection districts to adopt a
sales tax for district operations. These sections identify those districts. This proposal is
removing the individual sections and replacing with Section 321.900 which allows all fire
protection districts to have the sales tax. This provision is cleanup language and will not have a
fiscal impact.
Section 321.241 Fire Protection District Property Tax
DOR notes currently, fire protection districts have the ability to levy a property tax for the
purpose of funding the district. Section 321.240 allows a levy of $0.30 for every $100 in
valuation. Section 321.241 allows an additional $0.25 for every $100 of valuation. This
proposal is repealing the ability of districts to levy the additional $0.25. This proposal will
prevent additional districts from implementing the additional property tax. This proposal will
not directly fiscally impact the state.
This proposal will require programming changes to DOR’s tax computer system. These changes
are estimated at $7,193.
Oversight assumes the Department of Revenue is provided with core funding to handle a certain
amount of activity each year. Oversight assumes DOR could absorb the system and computer
costs related to this proposal. If multiple bills pass which require additional staffing and duties at
substantial costs, DOR could request funding through the appropriation process.
Proposal as a Whole
Officials from the Office of Administration - Budget and Planning defer to the local
government in the cities and fire protection districts for the 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. L.R. No. 0733H.01I
Bill No. HB 247
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Oversight notes the proposed Public Safety and Fire Protection sales taxes shall not become
effective unless the governing body of the city/county submits to its voters a proposal to
authorize the respective city/county to impose the tax and the voters approve the proposal.
Oversight will show a revenue impact to all local political subdivisions ranging from $0
(localities do not propose the tax to its respective voters or voters reject the proposal) to an
unknown positive amount.
Oversight notes upon voter approval, if the city/county adopts the sales tax and DOR is required
to collect and distribute the sales tax to the district, DOR will retain 1% of the sales tax for
reimbursement of its expenses. Therefore, Oversight will show a range of $0 (locality does not
propose the tax to its respective voters or voters reject the proposal) to an unknown positive
amount to the general revenue fund.
Officials from the City of Kansas City and the City of Springfield each assume this proposal
could have a positive fiscal impact on their respective cities in an indeterminate amount if the tax
were approved.
Officials from the City of Urich note if this would pass, their current tax, approved by their
residents for their Fire Department would be repealed and they would have to go back to the
voters and ask the same question again, at an estimated expense of ($700.00). Officials from the
City of Urich also noted they could possible lose the $18,000.00 per year that they are currently
receiving in public safety taxes.
Officials from the City of O’Fallon assume the proposal will have no fiscal impact on their
organization.
Officials from the Missouri Department of Transportation, Missouri Department of
Conservation, and the Department of Natural Resources, each assume the proposal will have
no fiscal impact on their respective organizations. Oversight does not have any information to
the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. L.R. No. 0733H.01I
Bill No. HB 247
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FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUERevenue Impact - Public Safety Sales
Tax 1% collection fee- §94.905
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Revenue Impact - Fire Protection
District Sales Tax 1% collection fee-
§321.900
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Revenue Impact - Public Safety Sales
Tax - §94.905
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
Revenue Impact - Fire Protection
District Sales Tax - §321.900
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Small Business
Businesses located in cities and fire protection districts who adopt the public safety sales tax will
be impacted by this proposal.
FISCAL DESCRIPTION
This bill creates, modifies, and repeals numerous provisions of law relating to public safety sales
taxes. L.R. No. 0733H.01I
Bill No. HB 247
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CITY SALES TAX FOR PUBLIC SAFETY (Section 94.905)
Under this bill, the governing body of any city is authorized to impose, upon a 4/7 majority
approval by voters, a sales tax in the amount of up to .05% for the purpose of improving public
safety for the city, including expenditures on equipment, city employee salaries and benefits, and
facilities for police, fire, and emergency medical providers. Any city with a public safety sales
tax in effect prior to August 28, 2023, may:
(1) Continue to impose the public safety sales tax previously authorized; or
(2) Impose a new public safety sales tax as provided under this bill; however, such city shall
not enact a new public safety sales tax under this bill without discontinuing any public
safety sales tax authorized prior to August 28, 2023.
The provisions of this bill shall not be construed as an authorization upon any sales tax
previously authorized.
SALES TAX FOR FIRE PROTECTION SERVICES (Section 321.900)
Under this bill, the governing body of any fire protection district, or the governing body of any
municipality having a municipal fire department or contracting for fire protection services is
authorized to impose, upon a four-sevenths majority approval by voters, a sales tax in the amount
of up to .05% for the operation of the fire protection district, the municipal fire department, or
the municipal contract for fire protection services. All sales taxes collected by the Director of
Revenue on behalf of any fire protection district or municipality, less 1% for cost of collection,
shall be deposited in a special trust fund, which is hereby created, to be known as the "Fire
Protection Sales Tax Trust Fund" and shall be distributed to fire protection districts or
municipalities, as described in the bill. Any fire protection district or municipality with a public
safety sales tax in effect prior to August 28, 2023, may:
(1) Continue to impose the public safety sales tax previously authorized; or
(2) Impose a new public safety sales tax as provided under this bill; however, such fire
protection district or municipality shall not enact a new public safety sales tax under this
section without discontinuing any public safety sales tax authorized prior to August 28,
2023.
The provisions of this bill shall not be construed as an authorization upon any sales tax
previously authorized.
REPEAL AND REFERENCES TO CURRENT SALES TAX LAWS
This bill repeals Sections 94.900, 94.902, 94.903, 321.241, 321.242, and 321.246, RSMo.
Additionally, this bill removes references to such sections in Sections 144.518 and 321.244.
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. 0733H.01I
Bill No. HB 247
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SOURCES OF INFORMATION
Department of Revenue
Office of Administration - Budget and Planning
Missouri Department of Transportation
Department of Natural Resources
Missouri Department of Conservation
City of Kansas City
City of Springfield
City of Urich
City of O’Fallon
Julie MorffRoss StropeDirectorAssistant DirectorMarch 3, 2023March 3, 2023