COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1466S.01I Bill No.:SB 354 Subject:Taxation and Revenue - Sales and Use; Political Subdivisions; Fire Protection Type:Original Date:March 27, 2023Bill Summary:This proposal authorizes certain fire protection districts and ambulance
districts to propose a 1.0% sales tax.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026General Revenue *$0$0 or up to $595,709$0 or up to $893,563Total Estimated Net
Effect on General
Revenue $0$0 or up to $595,709$0 or up to $893,563
*This proposal increases the top sales tax rate that can be approved for ambulance districts and
fire protection districts (from 0.5% to 1%) – the amount above represents the 1% collection fee if
every district that currently collects a sales tax gets voter approval to raise the sales tax rate to the
new ceiling (1%)
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. 1466S.01I
Bill No. SB 354
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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
$0 or Up to
$59,570,890
$0 or Up to
(Unknown)
*This proposal increases the top sales tax rate that can be approved for ambulance districts and
fire protection districts (from 0.5% to 1%) - this amount represents the increase in collections
(less the 1% collection fee) if every district that currently collects a sales tax gets voter approval
to raise the sales tax rate to the new ceiling (1%). The potential for a net negative impact for
ambulance districts and/or fire protection districts would only be possible the year after the
approval/implementation of the increased sales tax rate. L.R. No. 1466S.01I
Bill No. SB 354
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FISCAL ANALYSIS
ASSUMPTION
Section 321.552 Ambulance and Fire Protection District Sales Tax
Officials from the Office of Administration - Budget and Planning defer to the ambulance and
fire 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.
Officials from the Department of Revenue (DOR) assume this proposal would allow any
governing body of an ambulance or fire protection district to impose a sales tax in an amount up
to one percent on all retail sales made in such district. Currently the cap is at one-half of one
percent. This proposal would not allow the districts in Clay, Greene, Jackson, Jefferson, St.
Charles County, and St. Louis City to increase their rates. In order to increase the sales tax the
district would be required to hold an election and notify the Department of the increase. The first
available election would be April 2024, so the tax would not be collected until October 2024 (FY
2025) and remitted starting November 2024.
Currently the following districts have a sales tax. Using information on the amount of sales tax
DOR collects from these districts, DOR calculated how much additional revenue would be raised
by the districts if all raised their sales tax to the maximum 1% allowed by this proposal.
Political Subdivision0.0050.00250.00375
0.004
5
NOEL T ADAMS
AMBULANCE DISTRICT$606,042.36
BARTON COUNTY
AMBULANCE DISTRICT$655,065.39
WARSAW-LINCOLN
AMBULANCE DISTRICT$930,305.39
MARIES-OSAGE
AMBULANCE DISTRICT$208,836.79
MILLER COUNTY
AMBULANCE DISTRICT$1,802,401.14
SAINT JAMES AMBULANCE
DISTRICT$411,059.60
IRON COUNTY
AMBULANCE DISTRICT$861,653.82
CAM-MO AMBULANCE
DISTRICT$1,036,918.06
DADE COUNTY
AMBULANCE DISTRICT$300,856.68 L.R. No. 1466S.01I
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SALT RIVER AMBULANCE
DISTRICT$242,091.45
OSAGE AMBULANCE
DISTRICT$445,275.70
STEELVILLE AMBULANCE
DISTRICT$256,704.85
ST FRANCOIS COUNTY
AMBULANCE DISTRICT$4,941,541.11
CALLAWAY COUNTY
AMBULANCE DISTRICT$2,249,091.99
CEDAR COUNTY
AMBULANCE DISTRICT$631,689.36
HERMANN AREA
AMBULANCE DISTRICT$488,144.21
AVA AMBULANCE
DISTRICT$572,603.00
RANDOLPH COUNTY
AMBULANCE DISTRICT$1,765,185.14
WASHINGTON COUNTY
AMBULANCE DISTRICT$1,032,860.48
ADAIR COUNTY
AMBULANCE DISTRICT $1,491,354.79
LINN COUNTY
AMBULANCE DISTRICT$713,418.15
PULASKI COUNTY
AMBULANCE DISTRICT$2,243,756.99
WASHINGTON AREA
AMBULANCE DISTRICT $2,129,345.41
MERAMEC AMBULANCE
DISTRICT$1,086,204.72
MID-MO AMBULANCE
DISTRICT$2,085,698.91
STE GENEVIEVE COUNTY
AMBULANCE DISTRICT$994,056.60
MARION COUNTY
AMBULANCE DISTRICT$2,564,835.36
NEW MADRID COUNTY
AMBULANCE DISTRICT$1,761,432.71
ST CLAIR AMBULANCE
DISTRICT$553,713.86
MONROE CITY
AMBULANCE DISTRICT$246,420.24 L.R. No. 1466S.01I
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OWENSVILLE AREA
AMBULANCE DISTRICT$519,082.58
RAY COUNTY AMBULANCE
DISTRICT$883,486.52
COLE CAMP AMBULANCE
DISTRICT$142,632.30
NEW HAVEN AMBULANCE
DISTRICT$195,413.63
CALDWELL COUNTY
AMBULANCE DISTRICT$325,667.86
LINCOLN COUNTY
AMBULANCE DISTRICT$3,475,072.44
NODAWAY COUNTY
AMBULANCE DISTRICT$1,431,741.79
TANEY COUNTY
AMBULANCE DISTRICT $5,187,338.89
ANDREW COUNTY
AMBULANCE DISTRICT$584,406.41
NORTH CRAWFORD
COUNTY AMBULANCE
DISTRICT$854,727.81
OREGON COUNTY
AMBULANCE DISTRICT$505,368.53
COOPER COUNTY
AMBULANCE DISTRICT $543,832.36
OZARK COUNTY
AMBULANCE DISTRICT$393,514.71
VAN-FAR AMBULANCE
DISTRICT$142,427.21
AUDRAIN AMBULANCE
DISTRICT$1,176,353.37
LEWIS COUNTY
AMBULANCE DISTRICT$377,871.20
GERALD AREA
AMBULANCE DISTRICT$232,879.14
PETTIS COUNTY
AMBULANCE DISTRICT$3,636,158.17
CAMERON AMBULANCE
DISTRICT$791,440.96
TRI-COUNTY AMBULANCE
DISTRICT$412,508.27
SOUTH BARRY COUNTY
AMBULANCE DISTRICT$1,059,300.69 L.R. No. 1466S.01I
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CLARK COUNTY
AMBULANCE DISTRICT$433,921.06
UNION AMBULANCE
DISTRICT$1,440,911.12
REYNOLDS COUNTY
AMBULANCE DISTRICT$611,920.82
BARRY LAWRENCE
COUNTY AMBULANCE
DISTRICT$1,225,312.43
SOUTH HOWELL COUNTY
AMBULANCE DISTRICT$2,194,031.52
MADISON COUNTY
AMBULANCE DISTRICT$627,063.69
RIPLEY COUNTY
AMBULANCE DISTRICT$390,678.59
NORTH SCOTT COUNTY
AMBULANCE DISTRICT$633,264.77
SCOTLAND COUNTY
AMBULANCE DISTRICT$307,138.83
SOUTH SCOTT COUNTY
AMBULANCE DISTRICT$195,742.83
SOUTHERN STONE FIRE
PROTECTION DISTRICT$2,449,508.28
ORRICK FIRE PROTECTION
DISTRICT$51,491.86
SOUTH METROPOLITAN
FIRE PROTECTION
DISTRICT$1,857,564.62
SULLIVAN FIRE
PROTECTION DISTRICT$1,330,093.43
ST CLAIR FIRE PROTECTION
DISTRICT$554,479.25
BOURBON FIRE
PROTECTION DISTRICT$172,806.64
UNION FIRE PROTECTION
DISTRICT$1,433,011.80
PLEASANT HILL FIRE
PROTECTION DISTRICT$490,555.55
LINCOLN COUNTY FIRE
PROTECTION DISTRICT 1$900,905.69
$66,128,320.43$5,731,171.25$3,620,700.20$0.00 L.R. No. 1466S.01I
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The Department is allowed to retain 1% for collection costs, so this would be an increase to
General Revenue of $893,563 if all the subdivisions raised the tax to the maximum allowed.
1% CollectionsDOR Fee
District
Collections
0.0025$17,193,513.75$171,935.14$17,021,578.610.00375$6,034,500.33$60,345.00$5,974,155.330.0045$0.00$0.00$0.000.005$66,128,320.43$661,283.20$65,467,037.230.01$89,356,334.51$893,563.35$88,462,771.17
This could impact General Revenue $0 to $893,563 starting in FY 2025.
This could impact local political subdivisions $0 to $88,462,771 starting in FY 2025.
Oversight will show 8 months collections for FY 2025 since the earliest the increased sales
taxes could take effect is October of 2024 and collections lag by a month.
This will not have a fiscal impact on the Department to administer.
Oversight notes Section 321.552.3. denotes “the fire protection district “shall lower the level of
its tax rate by an amount which reduces property tax revenues by an amount equal to fifty
percent of the amount of sales tax collected in the preceding year.” Oversight provides an
example of such a reduction on next page:
Oversight shows the reduction of the property tax reduction consequence below:
Up to 1% revenue Increase by less than 1%New Proposal add up to 1%$1,000 New Proposal .825%$825 Current Collection .5%($500)Current Collection .5%$500 Difference (gain)$500 Difference (gain)$325
Next year property reduction of the
amount that the sales tax were
increased (1/2 of $1000)($500)
Next year property reduction of
the amount that the sales tax
were increased (1/2 of $825)($412.50)
Net Gain (revenues) for Locals
following year$0
Net loss (revenues) for Locals
following year($87.50)
Oversight notes that increase in sales tax coupled with decrease of property tax in the next year
could potentially negate any gains for the fire districts or, unless the jurisdictions implement the
full 1% increase available to them, it could lead to further loss of revenue in proceeding years. L.R. No. 1466S.01I
Bill No. SB 354
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Therefore, Oversight will note the 1% collection fee gain in GR and Local Governments due to
the gain in first year of the implementation and $0 (gain of revenues for localities who choose to
increase the sales tax up to 1%) to (Unknown) (loss of revenues for localities who choose to
increase the sales tax to less than 1%) impact on the fiscal note in future years.
Officials from the Department of Natural Resources, Missouri Department of Conservation,
Missouri Department of Transportation, Office of Administration, and the Office of the
Secretary of State
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 Jackson County Election Authority, Platte County Election Authority, St
Louis City BEC Election Authority, and the St Louis County Election Authority 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 Administration assume the proposal will have no fiscal impact on
their organization. Oversight does not have any information to the contrary.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other counties, ambulance & EMS and fire protection districts
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.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL REVENUERevenue Gain - §321.552 - DOR 1%
collection fee $0
$0 or up to
$595,709
$0 or up to
$893,563
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND$0
$0 or up to
$595,709
$0 or up to
$893,563 L.R. No. 1466S.01I
Bill No. SB 354
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FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Revenue Gain & Loss - §321.552 -
Sales Tax Disbursement to Fire
Protection Districts and/or Ambulance
Districts $0
$0 or up to
$59,570,890
$0 or up to
(Unknown)
ESTIMATED NET EFFECT TO
LOCAL POLITICAL
SUBDIVISIONS$0
$0 or up to
$59,570,890
$0 or up to
(Unknown)
FISCAL IMPACT – Small Business
Small businesses in districts where the tax is increased will be impacted by paying the higher tax.
FISCAL DESCRIPTION
Current law authorizes ambulance and fire protection districts in certain counties to propose a
sales tax at a rate of up to 0.5%. This act allows such districts to propose a sales tax of up to
1.0%.
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. 1466S.01I
Bill No. SB 354
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SOURCES OF INFORMATION
Office of Administration
Department of Revenue
Office of Administration
Department of Natural Resources
Missouri Department of Conservation
Missouri Department of Transportation
Office of Administration
Office of the Secretary of State
Jackson County Election Authority
Platte County Election Authority
St Louis City BEC Election Authority
St Louis County Election Authority
Julie MorffRoss StropeDirectorAssistant DirectorMarch 27, 2023March 27, 2023