COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1229H.03C Bill No.:HCS for SS for SB 222 Subject:Cities, Towns, and Villages; County Government; Landlords and Tenants;
Political Subdivisions
Type:Original Date:April 24, 2023Bill Summary:This proposal modifies and establishes provisions relating to political
subdivisions and establishes provisions relating to landlord/tenant
proceedings.
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 2026Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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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 or (Unknown) to
Unknown
$0 or (Unknown) to
Unknown
$0 or (Unknown) to
Unknown L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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FISCAL ANALYSIS
ASSUMPTION
§44.251 – Protecting Missouri’s Small Businesses Act
In response to a similar proposal from 2023 (Perfected HCS for HB 1263), officials from the
Office of Administration - Budget and Planning (B&P) noted this proposal would require a
reduction of fees, personal property tax, and real property tax in political subdivisions with
shutdown orders. Qualifying shut down orders must be caused by reasons outside of a business’
control.
Beginning January 1, 2024, any political subdivision with a shutdown order that lasts for at least
21 consecutive days or 45 cumulative days must:
longer.
was closed due to the shutdown order.
This proposal would not:
subdivision.
For shutdown orders that end before June 1
st
, the county assessor must reduce the property tax
liability for all real and personal property located within the boundaries of the shutdown order.
The reduction shall be based on the number of days a business was closed due to the shutdown
order. Affected taxpayers must then pay the reduced tax amount by December 31
st
.
For shutdown orders that end on or after June 1
st
, the taxpayer must pay the full property tax
liability by December 31
st
. The county assessor must then provide information on how such
taxpayer may apply for a refund. The taxpayer must apply for a tax refund by January 15
th
. The
county assessor must then calculate the allowable refund amount by February 15
th
and pay all
refund claims by March 15
th
.
B&P notes that Section 44.251.4(2) requires business owners that rent or lease their real property
distribute the property tax savings to all renters and lessors.
B&P further notes that it is unclear whether this proposal would impact state property tax levies,
if there were a statewide shutdown order. B&P also notes that the Blind Pension Trust Fund
levies a $0.03 per $100 assessed value property tax on all real and personal property located
within Missouri. L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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B&P is unaware of any restrictive public health orders currently in effect. Therefore, this
proposal may have an unknown impact on state and local revenues in the future.
B&P notes the following concerns with the proposed language:
o
were a statewide shutdown order. Section 44.251.2(2) includes orders by the state
within the definition of “shutdown order”.
Therefore, B&P assumes that if there were a statewide shutdown order, state revenues would be
impacted through the reduction in license fees as well as reductions in real and personal business
property.
o
license fees for six months for any shutdown order that lasts less than 180 days.
If a business is closed due to a shutdown order for 22 consecutive days, the
political subdivision must still waive the fees for the full 180 days.
B&P further notes that the last sentence Section 44.251.4(1)(a) allows business license fees to be
prorated, but the language provides no information as to how they may be prorated. B&P
assumes that the license fees may be prorated for the remaining six months (or less depending on
the length of the closure) of the year. B&P further assumes that the license fees may not be
prorated to account for only the days a business was actually closed (if less than six months).
st
o
if a taxpayer paid the reduced tax after December 31. It is unclear whether the
taxpayer would be assessed interest and penalties on the reduced tax liability or
on the full tax liability.
o
liable for the full tax amount (amount before reduction) if they pay the tax
liability after December 31st.
st
o
after December 31st. Whether a late payment would disqualify such taxpayer
from receiving a refund, or whether interest and penalties would be assessed on
the full tax liability or the remaining tax liability accounting for the refund
amount.
o
to review and calculate the eligible refund amount for all refund claims within
that county. B&P notes that as of 2019, the median number of businesses per
county was 385 and there were 25 counties with over 1,000 businesses. L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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In response to a similar proposal from 2023 (HB 1263), officials from the Jackson County
Assessor assumed this proposed legislation could have a significant negative impact on County
and other taxing jurisdiction’s operations if the County were required to adjust property tax
amounts for days closed due to public health order. This fiscal impact could be measured in the
millions of dollars when applied across all taxing jurisdictions such as school districts and fire
protection districts.
In 2020, Jackson County asked for the closure of all businesses deemed non-essential only after
receiving guidance from the state Department of Health and federal Center for Disease Control
(CDC). As soon as those closure recommendations changed at the federal and state levels,
Jackson County eliminated its closure guidelines. A future national public health or public
safety emergency may require the temporary closure of certain facilities to maintain public
safety. Jackson County and its taxing jurisdictions should not be penalized for acting in the best
interest of public health or safety.
Officials from the City of Kansas City noted this legislation could have a substantial negative
impact of an indeterminate amount.
Officials from the City of Springfield anticipate a potential negative fiscal impact if the City
needs to issue a shutdown order due to a public health emergency.
In response to a similar proposal from 2023 (Perfected HCS for HB 1263), officials from the
State Tax Commission assumed the proposal would 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.
In response to a similar proposal from 2023 (Perfected HCS for HB 1263), officials from the
City of O’FallonCity of Claycomo, Cole Camp Ambulance District, and the
County Police Department each assumed the proposal would 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.
In response to a similar proposal from 2023 (Perfected HCS for HB 1263), officials from the
Department of Social Services assumed the proposal would have no fiscal impact on their
organization. Oversight does not have any information to the contrary.
In response to a similar proposal from 2023 (Perfected HCS for HB 1263), officials from the St.
Charles Community College and Kansas City Police Department each assumed the proposal
would have no fiscal impact on their organization. Oversight does not have any information to
the contrary. L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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For purposes of this fiscal note, Oversight assumes this proposal would not impact the Blind
Pension Fund. If this assumption is incorrect, it could substantially alter the impact provided in
this fiscal note.
Oversight will present an impact on this fiscal note as a $0 (no shutdown order in implemented)
to an unknown loss in revenue to local political subdivisions for the reduced property tax
revenues and the waived business license fees.
§§64.570, 64.820, 65.665, 89.380 & 182.819 – Library Boards and County Planning
Commissions
In response to a similar proposal from 2023 (Perfected HCS for HB 986), officials from the City
of Jefferson 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 these sections.
§67.137 – Moratorium on Eviction Proceedings
In response to a previous version, officials from the Office of the State Courts Administrator
and Department of Commerce and Insurance each assumed 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.
In response to a similar proposal from 2022 (SB 1044), officials from the Attorney General’s
Office
In response to a previous version, officials from the City of Jefferson assumed there could be a
fiscal impact if a court were to vacate a judgement a municipality has on a property as a result of
the referenced court hearing. If a municipality had to hire an attorney to assist with such a court
action, there could be a small fiscal impact.
In response to a previous version, officials from the City of Kansas City and the City of
Springfield each assumed the proposal would have no fiscal impact on their respective
organizations.
Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their respective organizations. Oversight does not have any information
to the contrary. Therefore, Oversight will reflect a zero impact on the fiscal note for this
section.. L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties 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.
§62.2677 – Video Service Providers
In response to a similar proposal from 2023 (HB 647), officials from the Department of
Commerce and Insurance, Kansas City and the City of Springfield each assumed the
proposal would have no fiscal impact on their respective organizations.
In response to a similar proposal from 2022 (SB 1232), officials from the City of Springfield
anticipated a possible negative fiscal impact of an indeterminate amount from this bill if a court
case in pending litigation involving another city determines that streaming services are obligated
to pay video service licensing fees, since this bill would revise the definition of "video service"
to exclude businesses offering streaming content.
Oversight assumes this proposal may create a fiscal impact to local political subdivisions that
collect the franchise entity fee in Section 67.2689, as that fee utilizes the “video service”
definition, which is being amended by this bill. Oversight will reflect a $0 to potential unknown
revenue and potential unknown loss to local political subdivisions for this section.
§182.645 – Dates for the Fiscal Year of Consolidated Public Library Districts
In response to a similar proposal from 2023 (HB 437), officials from the Office of the Secretary
of State (SOS) and the Office of the State Auditor each assumed the proposal would have no
fiscal impact on their respective organizations.
Oversight assumes the proposal would not have a direct fiscal impact to public library districts.
Oversight notes according to the SOS’s website there are 12 counties (Cooper, Pettis, Benton,
Johnson, Lafayette, Lawrence, Barry, Jackson, Clay, Platte, Buchanan & Andrew) in the state
that have consolidated public library districts as listed in the chart below: L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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§436.337 – Home Inspections
In response to a similar proposal from 2023 (HB 1145), officials from St. Louis City (STL)
noted the Building Commissioner in STL estimates that 30-40% of Housing Conservation
District inspections occur because of a residential property sale. Eliminating the requirement for
these inspections could reduce Building Division revenue by up to $800,000.
Oversight inquired with STL regarding their response. The STL states that their response falls
under two municipal ordinances: 67914 regarding the City Housing Conservation Program and
69202 regarding revised legislation on the City Housing Conservation Program. According to
ordinance 67914, Section 5C: L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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Upon determining that a dwelling unit has undergone a complete change of occupancy or a sale
of the property as reflected in the Recorder of Deeds Office without first obtaining a Certificate
of Inspection, the Code Official shall serve notice on the owner of such dwelling unit, by either
first class mail or personal service that a Certificate of Inspection must be obtained within thirty
(30) calendar days of notification or unit will be condemned for occupancy and must be vacated.
Section 8 states:
A. Fees for a Certificate of Inspection prior to occupancy when the application for
inspection is: 1. General inspection of exterior of building and all common areas and
premises plus one dwelling unit is $70.00. Each additional dwelling unit included in the
General Inspection, if inspection is performed within the same building and on a common
date is $25.00 per each additional dwelling unit.
B. The fee for a Certificate of Inspection per unit which is unlawfully occupied shall be as
follows: 1. $110.00 per unit.
Oversight will reflect a $0 or negative unknown for locals.
In response to a similar proposal from 2023 (HB 1145), officials from the Attorney General’s
OfficeDepartment of Commerce and Insurance, the Department of Economic
Development, the City of Kansas City and the City of Springfield each assumed the proposal
would 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.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties 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.
§534.157 – Rental Properties Transfers of Titles
Oversight assumes this section will have no fiscal impact.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026$0$0$0 L.R. No. 1229H.03C
Bill No. HCS for SS for SB 222
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
FY 2024
(10 Mo.)
FY 2025FY 2026Revenue Reduction - §44.251 –
Reduction in real and personal property
tax revenues in the event of a shutdown
order (p. 6)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Revenue Reduction - §44.251 –
Waiving of business license fees in the
event of a shutdown order (p. 6)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
Revenue/Loss – §67.2677 - potential
Video Service Provider Fees change
from definition change to “video
service” (p. 7)
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
Loss – Cities – §436.337 - revenues
from building inspection fees done on
residential property for sale (p. 9)
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
$0 or
(Unknown) to
Unknown
FISCAL IMPACT – Small Business
§44.251 - This proposal could impact small businesses that may be shut down by waiving and
reimbursing business license fees.
§67.137 - Small business landlords could be positively impacted as a result of this proposal.
§436.337 - Small businesses who do home inspections on residential properties for sale could be
impacted as a result of this proposal. L.R. No. 1229H.03C
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FISCAL DESCRIPTION
This proposal modifies and establishes provisions relating to political subdivisions and
establishes provisions relating to landlord/tenant proceedings.
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 the State Courts Administrator
Attorney General’s Office
Department of Commerce and Insurance
Department of Economic Development
City of Kansas City
City of Springfield
City of Jefferson
Office of Administration - Budget and Planning
State Tax Commission
Department of Social Services
Jackson County Assessor
City of Kansas City
Kansas City Police Department
City of Springfield
City of O’Fallon
St. Charles Community College
City of Claycomo
St. Louis County Police Department
Cole Camp Ambulance District
St. Louis City
Julie MorffRoss StropeDirectorAssistant DirectorApril 24, 2023April 24, 2023