COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0731S.01I Bill No.:SB 180 Subject:Taxation and Revenue - Sales and Use; Political Subdivisions; Cities, Towns, and
Villages
Type:Original Date:March 13, 2023Bill Summary:This proposal authorizes the cities of Clinton and Lincoln to impose a sales
tax for public safety.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue*$0$0 to $8,871 $0 to $12,064 Total Estimated Net
Effect on General
Revenue $0$0 to $8,871 $0 to $12,064
*Represents the potential 1% Department of Revenue collection fee if voters approve the sales
taxes.
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. 0731S.01I
Bill No. SB 180
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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 2026City of Clinton$0$0 to $771,232 $0 to $1,048,876 City of Lincoln$0$0 to $40,661 $0 to $55,299 City of Cole Camp$0$0 to $57,400 $0 to $78,064 Local Government$0$0 to $869,293 $0 to $1,182,239 L.R. No. 0731S.01I
Bill No. SB 180
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FISCAL ANALYSIS
ASSUMPTION
Section 94.902 Clinton, Lincoln & Cole Camp Public Safety Sales Tax
Officials from the Department of Revenue note this proposal would allow any city with more
than one thousand sixty but fewer than one thousand one hundred seventy inhabitants and
located in a county with more than nineteen thousand but fewer than twenty-two thousand
inhabitants and with a county seat with more than one thousand but fewer than two thousand two
hundred twenty inhabitants to have a public safety sales tax. DOR believes this would be the
City of Cole Camp and the City of Lincoln.
Additionally, it would allow any city with more than nine thousand but fewer than ten thousand
inhabitants and that is the county seat of a county with more than nineteen thousand but fewer
than twenty-two thousand inhabitants to adopt a public safety sales tax. DOR believes this to be
the City of Clinton.
The sales tax may be imposed in an amount up to one-half of one percent. The tax shall be
imposed solely for the purpose of improving the public safety.
When the Department collects these public safety sales taxes DOR is allowed to retain 1% to
reimburse the Department for collection costs.
CITY OF COLE CAMP
DOR shows that the City of Cole Camp has taxable sales of:
CYJan-MarApr-JunJul-SepOct-Dec Total 2017$3,081,084$2,956,959$3,249,944$3,336,067$12,624,0542018$3,278,248$3,220,758$3,474,064$4,684,461$14,657,5312019$3,402,802$3,687,581$3,745,639$3,618,415$14,454,4372020$3,331,101$3,451,596$3,915,171$3,748,845$14,446,7132021$3,601,159$3,884,537$4,173,028$4,255,922$15,914,6462022$3,074,242$3,849,935 Source:http://dor.mo.gov/publicreports/
The Department notes this proposal allows up to a one-half of one percent sales tax. For the
fiscal impact, DOR will assume the one-half of one percent sales tax is adopted. However, for
informational purposes DOR is showing how much would be collected if they just chose a lesser
amount than the full one-half percent sales tax. Using the taxable sales and a 2% inflation rate in
the future, DOR calculated the amount the City of Cole Camp would collect and the fee retained
by DOR as: L.R. No. 0731S.01I
Bill No. SB 180
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Cole Camp1/4 of 1% Tax1/2 of 1% TaxFiscal YearDOR 1% FeeLocal
Collection
DOR 1%
Fee
Local
Collection
2024$383$37,899$766$75,7992025$390$38,657$781$77,3152026$398$39,431$797$78,861
DOR notes that this proposal would become effective on August 28, 2023, and the first election
this issue could be presented to the voters would be the April 2024 general election. This sales
tax would become effective on the first day of the second calendar quarter after the director of
revenue receives notice of the adoption of the sales tax, which is estimated to be October 1, 2024
(FY 2025) if adopted by the voters. Therefore, the impact in FY 2025 would be for 9 months.
Cole Camp1/2 of 1% TaxFiscal YearDOR 1%
Fee
Local Collection2024$0$02025$586$57,9862026$797$78,861
CITY OF LINCOLN
DOR shows that the City of Lincoln has taxable sales of:
CYJan-MarApr-JunJul-SepOct-Dec Total 2017$2,177,513$2,602,875$2,547,296$2,120,049$9,447,7342018$2,444,106$2,542,249$2,617,362$2,318,717$9,922,4342019$2,031,857$2,243,606$2,706,418$2,367,247$9,349,1282020$2,210,290$2,737,197$2,871,955$2,513,477$10,332,9192021$2,579,066$2,987,493$3,161,798$2,625,409$11,353,7662022$2,345,952$3,146,216 Source:http://dor.mo.gov/publicreports/
The Department notes this proposal allows up to a one-half of one percent sales tax. For the
fiscal impact, DOR will assume the one-half of one percent sales tax is adopted. However, for
informational purposes DOR is showing how much would be collected if they just chose a lesser
amount than the full one half of one percent sales tax. Using the taxable sales and a 2% inflation
rate in the future, DOR calculated the amount the City of Lincoln would collect and the fee
retained by DOR as:
Lincoln1/4 of 1% Tax1/2 of 1% Tax L.R. No. 0731S.01I
Bill No. SB 180
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Fiscal YearDOR 1% FeeLocal
Collection
DOR 1%
Fee
Local
Collection
2024$271$26,847$542$53,6942025$277$27,384$553$54,7682026$282$27,931$564$55,863
DOR notes that this proposal would become effective on August 28, 2023, and the first election
this issue could be presented to the voters would be the April 2024 general election. This sales
tax would become effective on the first day of the second calendar quarter after the director of
revenue receives notice of the adoption of the sales tax, which is estimated to be October 1, 2024
(FY 2025) if adopted by the voters. Therefore, the impact in FY 2025 would be for 9 months.
Lincoln1/2 of 1% Tax
Fiscal Year
DOR
1%
Fee
Local
Collection
2024$0$02025$415$41,0762026$564$55,863
CITY OF CLINTON
DOR shows that the City of Clinton has taxable sales of:
CYJan-MarApr-JunJul-SepOct-Dec Total 2017$40,038,915$47,066,194$45,477,582$43,884,475$176,467,1672018$40,961,939$47,940,212$46,462,280$46,505,858$181,870,2882019$41,412,692$48,554,205$48,146,261$47,602,031$185,715,1892020$42,901,586$51,426,027$50,786,586$49,145,326$194,259,5252021$49,010,609$56,090,839$53,966,363$54,513,783$213,581,5942022$47,880,699$57,433,067 Source:http://dor.mo.gov/publicreports/
The Department notes this proposal allows up to a one-half of one percent sales tax. For the
fiscal impact, DOR will assume the one-half of one percent sales tax is adopted. However, for
informational purposes DOR is showing how much would be collected if they just chose a lesser
amount than the full one-half of one percent sales tax. Using the taxable sales and a 2% inflation
rate in the future, DOR calculated the amount the City of Clinton would collect and the fee
retained by DOR as:
Clinton1/4 of 1% Tax1/2 of 1% Tax L.R. No. 0731S.01I
Bill No. SB 180
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Fiscal
Year
DOR 1%
Fee
Local
Collection
DOR
1% Fee
Local
Collection
2024$5,144$509,217$10,287$1,018,4342025$5,246$519,401$10,493$1,038,8032026$5,351$529,789$10,703$1,059,579
DOR notes that this proposal would become effective on August 28, 2023, and the first election
this issue could be presented to the voters would be the April 2024 general election. This sales
tax would become effective on the first day of the second calendar quarter after the director of
revenue receives notice of the adoption of the sales tax, which is estimated to be October 1, 2024
(FY 2025) if adopted by the voters. Therefore, the impact in FY 2025 would be for 9 months.
Clinton1/2 of 1% TaxFiscal
Year
DOR 1%
Fee
Local Collection2024$0$02025$7,870$779,1022026$10,703$1,059,579
This proposal is not expected to have an administrative impact on the Department.
Officials from the Office of Administration - Budget and Planning defer to the local
government in the cities of Clinton and Lincoln 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.
Oversight will range the fiscal impact from $0 (not approved by voters) to the estimates
calculated by DOR for 9 months in FY 25 and reflect a full year of sales tax revenue for FY 26
in this proposal.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUEAdditional Revenue - DOR - '94.902 -
1% DOR Collection fee$0$0 to $8,871 $0 to $12,064
ESTIMATED NET EFFECT ON
GENERAL REVENUES$0$0 to $8,871 $0 to $12,064 L.R. No. 0731S.01I
Bill No. SB 180
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
CITY OF CLINTON Additional Revenues - additional sales tax
for Public Safety - '94.902 $0 $0 to $779,102
$0 to
$1,059,579
Loss - 1% collection fee kept by DOR$0$0 to ($7,870)$0 to ($10,703)ESTIMATED NET EFFECT ON
CITY OF CLINTON $0$0 to $771,232
$0 to
$1,048,876
CITY OF LINCOLN Additional Revenues - additional sales tax
for Public Safety - '94.902 $0 $0 to $41,076 $0 to $55,863
Loss - 1% collection fee kept by DOR$0$0 to ($415)$0 to ($564)ESTIMATED NET EFFECT ON
LINCOLN$0$0 to $40,661 $0 to $55,299
CITY OF COLE CAMPAdditional Revenues - additional sales tax
for Public Safety - '94.902 $0 $0 to $57,986 $0 to $78,861
Loss - 1% collection fee kept by DOR$0$0 to ($586)$0 to ($797)ESTIMATED NET EFFECT ON
CITY OF COLE CAMP$0$0 to $57,400 $0 to $78,064
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS$0$0 to $869,293
$0 to
$1,182,239 L.R. No. 0731S.01I
Bill No. SB 180
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FISCAL IMPACT – Small Business
Small businesses in Clinton, Lincoln, and Cole Camp that either collect and/or pay sales taxes
could be impacted by this proposal.
FISCAL DESCRIPTION
This act adds the cities of Clinton, Cole Camp, and Lincoln to the list of cities authorized to levy
a sales tax upon voter approval for the purposes of improving public safety.
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
Department of Revenue
Office of Administration - Budget and Planning
Julie MorffRoss StropeDirectorAssistant DirectorMarch 13, 2023March 13, 2023