COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0278H.04P Bill No.:Perfected HCS for HB 587 Subject:Property, Real and Personal; Cities, Towns, and Villages; Political Subdivisions Type:Original Date:March 9, 2023Bill Summary:This proposal modifies provisions relating to land bank agencies and the
collection of delinquent property taxes.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026Total Estimated Net
Effect on General
Revenue* $0 $0 $0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Blind Pension Fund*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated Net
Effect on Other State
Funds*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*Oversight notes B&P does not have enough information to determine which localities would
choose to opt-in or which properties and the amount of delinquency would subsequently be
impacted. Oversight assumes the $250,000 threshold would not be met from this proposal.
Numbers within parentheses: () indicate costs or losses. L.R. No. 0278H.04P
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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. 0278H.04P
Bill No. Perfected HCS for HB 587
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FISCAL ANALYSIS
ASSUMPTION
§§140.980, 140.981, 140.982, 140.983, 140.985, 140.986, 140.987, 140.991, 140.1000,
140.1009, 140.1012, 141.220, 141.230, 141.270, 141.290, 141.300, 141.320, 141.330, 141.360,
141.440, 141.520, 141.535, 141.540, 141.550, 141.560, 141.570, 141.580, 141.610, 141.680,
141.700, 141.821, 141.980, 141.1009 and 249.255 – Land Bank Agencies
In response to similar legislation from 2022, HB 2177, officials from the City of O’Fallon
assumed the proposal will have no fiscal impact on their organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note
for this city.
Oversight assumes this proposal is permissive, allowing cities and certain unincorporated
communities to establish a land bank agency. Oversight assumes this would take further action
by governing bodies of local political subdivisions and therefore, will not reflect a direct fiscal
impact.
§§140.010, 140.190, 140.250, 140.420, 140.984, 140.988, 140.994, 141.250, 141.410, 141.500,
141.620, 141.984 – Collection of Certain Delinquent Taxes
Oversight notes §140.988.5 states the county collector may collect a fee for the collection of
delinquent and back taxes of up to 5% on all sums collected if the county has established a land
bank agency. All fees collected shall be paid to the land bank agency. Oversight assumes this
would be additional revenue for the county and therefore will reflect a $0 to positive unknown
fiscal impact to counties.
Oversight notes in §141.500, subsections 2 & 3, have the potential for additional mail costs to
be expensed by the county collector. Oversight assumes the county collector is provided with
core funding to handle a certain amount of activity each year. Oversight assumes the county
collector could absorb the costs related to this proposal. If multiple bills pass which require
additional staffing and duties at substantial costs, the county collector could request funding
through the appropriation process.
Responses regarding the proposed legislation as a whole
Officials from the Office of Administration - Budget and Planning (B&P) assume concerning
Chapter 140, RSMo, & Section 249.255: This bill modifies provisions related to how land banks
are established and operated, purchase and sell property that is delinquent on taxes and distribute
funds from the sale of those properties, how county collectors and land tax attorneys are L.R. No. 0278H.04P
Bill No. Perfected HCS for HB 587
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compensated by the county and land bank located within the county, how suits and petitions are
brought forward for the foreclosure of tax liens on properties, and how counties and
municipalities sell properties that are tax delinquent. It also repeals sections on the collection of
delinquent taxes and the sale of delinquent tax properties. B&P notes that qualifying localities
may opt-in to this program. B&P does not have enough information to determine which localities
would choose to opt-in or which properties and the amount of delinquent tax would subsequently
be impacted. Therefore, to the extent that this proposal impacts delinquent tax collections, this
proposal may impact TSR and the Blind Pension Trust Fund by an unknown amount.
Oversight does not have information to the contrary and therefore, Oversight will reflect a $0 to
negative unknown amount as provided by the B&P for the Blind Pension Trust Fund. Oversight
assumes the $250,000 threshold would not be met.
Officials from the Department of Commerce and Insurance, the Department of Economic
Development, the Department of Labor and Industrial Relations, the Department of
Revenue, the Department of Social Services, the Missouri Department of Conservation, the
City of Kansas City, the City of Springfield, the Lincoln County Assessor’s Office, the
Phelps County Sheriff’s Office, the Office of the State Auditor and the State Tax
Commission 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.
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
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 proposal. If multiple bills pass which require the printing and distribution of
regulations at substantial costs, the SOS could request funding through the appropriation process.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties, county recorders, assessors, collectors and sheriff offices 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. L.R. No. 0278H.04P
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FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026BLIND PENSION FUNDLoss – B&P – potential delinquent tax
collections from Land Bank Agencies
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT ON
THE BLIND PENSION FUND
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026COUNTIESRevenue – potential fees charged for
the collection of delinquent and back
taxes of up to 5% (§140.988.5)$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON
COUNTY FUNDS
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This proposal modifies provisions concerning land bank agencies and concerning collection of
certain delinquent taxes.
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. 0278H.04P
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SOURCES OF INFORMATION
Office of Administration
Budget and Planning
Department of Commerce and Insurance
Department of Economic Development
Department of Labor and Industrial Relations
Department of Revenue
Department of Social Services
Missouri Department of Conservation
City of Kansas City
City of Springfield
Lincoln County Assessor’s Office
Phelps County Sheriff’s Office
Office of the State Auditor
State Tax Commission
Office of the Secretary of State
City of O’Fallon
Julie MorffRoss StropeDirectorAssistant DirectorMarch 9, 2023March 9, 2023