COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0733H.03C Bill No.:HCS for HB 247 Subject:Taxation and Revenue - Sales and Use; Political Subdivisions; Fire Protection;
Cities, Towns, and Villages
Type:Original Date:April 24, 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 reach the
$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.03C
Bill No. HCS for 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.03C
Bill No. HCS for HB 247
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FISCAL ANALYSIS
ASSUMPTION
Sections 94.900, 94.902, & 94.903 Repealed
Officials from the Department of Revenue (DOR) note 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 them 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
Officials from the Department of Revenue (DOR) note 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 and DOR will retain 1% of the collected tax
to cover administration of the tax. 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
Officials from the Department of Revenue (DOR) note 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
Officials from the Department of Revenue (DOR) note this provision is cleanup language and
will not have a fiscal impact.
Section 321.900 Fire Protection District Sales Tax L.R. No. 0733H.03C
Bill No. HCS for HB 247
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Officials from the Department of Revenue (DOR) note 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. 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 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
Officials from the Department of Revenue (DOR) note currently these statutes allow certain
delineated fire protection districts to adopt a sales tax for. 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.
Responses regarding the proposed legislation as a whole
In response to a previous version (HB 247), 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.
In response to a previous version (HB 247), officials from the City of Kansas City assume this
proposal could have a positive fiscal impact in an indeterminate amount if the tax were approved.
Officials from the Branson Police Department
impact for many areas in Missouri.
Officials from the City of Springfield anticipate a potential positive fiscal impact, if they chose
to impose an applicable tax and voters chose to approve it.
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. L.R. No. 0733H.03C
Bill No. HCS for HB 247
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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.
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 L.R. No. 0733H.03C
Bill No. HCS for HB 247
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FISCAL IMPACT – Small Business
Businesses located in cities and fire protection districts that adopt the public safety sales tax will
be impacted by this proposal.
FISCAL DESCRIPTION
The proposed legislation authorizes cities and fire protection districts to impose a public safety
sales tax.
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 - Budget and Planning
Department of Revenue
City of Kansas City
City of Springfield
Branson Police Department
Julie MorffRoss StropeDirectorAssistant DirectorApril 24, 2023April 24, 2023