COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0412S.01I Bill No.:SJR 11 Subject:Constitutional Amendments; Taxation and Revenue - Property; Motor Vehicles Type:Original Date:February 14, 2023Bill Summary:This proposal exempts noncommercial vehicles in excess of ten years old
from property tax.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026
General Revenue*
$0 or (More than
$10,000,000)$0$0
Total Estimated Net
Effect on General
Revenue
$0 or (More than
$10,000,000)**$0$0
*The potential fiscal impact of “(More than $10,000,000)” would be realized only if a special
election were called by the Governor to submit this joint resolution to voters.
**SOS has updated the estimated cost of a statewide special election after examining actual
reimbursement costs for the General Primary and General Election held during 2022.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2024FY 2025FY 2026Blind Pension Fund
$0$0
More than or less
than ($1,263,009)
Total Estimated Net
Effect on Other State
Funds $0$0
More than or less
than ($1,263,009)
Numbers within parentheses: () indicate costs or losses. L.R. No. 0412S.01I
Bill No. SJR 11
Page 2 of
February 14, 2023
KLP:LR:OD
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 2026
Local Government$0*$0
(Unknown, Could be
substantial) **
*Potential costs and state reimbursements net to zero in FY 2024 if a special election is
called.**Oversight notes local property tax revenues are designed to be revenue neutral from
year to year. The tax levy is adjusted relative to the assessed value to produce roughly the same
revenue from the prior year with an allowance for growth. Some taxing entities will be able to
increase the tax rate levied on other property to make-up for the lost revenue from exempt
assessments for motor vehicles that are at least ten years old and used solely for non-commercial
purposes. Some may not be able to. L.R. No. 0412S.01I
Bill No. SJR 11
Page 3 of
February 14, 2023
KLP:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration - Budget and Planning (B&P) note this proposal
would go to a public vote in November 2024. For the purpose of this fiscal note, B&P will
assume that, if voter approved, this proposal will become effective for tax year 2025. B&P notes
that property tax assessment are not completed until after August and the taxes are not due until
December. Therefore, B&P assumes that the property tax exemption would begin for tax year
2025, with payments due December 31, 2025, which is in FY26.
This proposal would exempt all non-commercial motor vehicles older than ten years from
property tax. Therefore, all model 2014 and older vehicles would be exempt from property tax
in tax year 2025. The following tax year (2026) all model 2015 and older vehicles would
become exempt from property tax.
B&P notes that currently, motor vehicles are assessed personal property tax at 33.33% of their
market value and all historic motor vehicles are assessed personal property at 5% of their market
value.
Based on information provided by DOR, this proposal may exempt 64.0% of motor vehicles
from property taxes in tax year 2025. By tax year 2030, this proposal may exempt 88.4% of
motor vehicles from property tax. B&P notes that this data is based on current registrations, for
the purpose of this fiscal note, B&P will assume that the age distribution of registered vehicles
will not significantly differ from the current distribution. Table 1 shows the number and percent
of vehicles registered in Missouri by model year and the tax year in which they would become
exempt from property tax.
Table 1: Age of Vehicles
Model Year
Registered
Vehicles
% of Total
Registered
Vehicles
Tax
Year
Exempt
2011 &
earlier3,645,82251.3%2025
2012277,4603.9%20252013300,5224.2%20252014322,2884.5%20252015350,2144.9%20262016351,9995.0%20272017366,8915.2%20282018339,3654.8%2029 L.R. No. 0412S.01I
Bill No. SJR 11
Page 4 of
February 14, 2023
KLP:LR:OD
2019331,2624.7%2030Total6,285,82388.4%
Using data published by the U.S. Department of Transportation – Bureau of Transportation
Statistics, B&P was able to determine the average price of new vehicles purchased between 1990
and 2019. Using the depreciation schedule allowable under IRS rules and Section 137.122,
RSMo, B&P estimated the current approximate fair market value for each model year. Table 2
shows the estimated average assessed value (market value x assessment rate) under current law
versus this proposal.
Table 2: Estimated Average Assessment ValueModel YearCurrentProposed Difference2011 &
earlier$874 $0 ($874)
2012$1,161 $0 ($1,161)2013$1,179 $0 ($1,179)2014$1,183 $0 ($1,183)2015$1,214 $0 ($1,214)2016$1,229 $0 ($1,229)2017$1,238 $0 ($1,238)2018$1,247 $0 ($1,247)2019$1,267 $0 ($1,267)
B&P notes that the Blind Pension Trust Fund levies a tax on property at the rate of $0.03 per
$100 assessed value. In addition, based on publicly available data, B&P estimates that the
average local personal property tax levy is 8.5%. Table 3 shows the average estimated revenue
impact per vehicle.
Table 3: Estimated Revenue Impact per Vehicle
Model Year
Assessment
Value
Reduction
Blind
Pension
Trust Fund
Local
Revenue
2011 & earlier($874)($0.26)($74.03)2012($1,161)($0.35)($98.34)2013($1,179)($0.35)($99.87)2014($1,183)($0.35)($100.21)2015($1,214)($0.36)($102.83)2016($1,229)($0.37)($104.10)2017($1,238)($0.37)($104.86)2018($1,247)($0.37)($105.63)2019($1,267)($0.38)($107.32) L.R. No. 0412S.01I
Bill No. SJR 11
Page 5 of
February 14, 2023
KLP:LR:OD
Therefore, B&P estimates that proposal may reduce revenues to the Blind Pension Trust Fund by
$1,263,009 in tax year 2025 (FY26). By tax year 2030 (FY31) this proposal could reduce
revenues to the Blind Pension Trust Fund by $1,906,521.
B&P also estimates that this section may reduce total local revenues by $359,495,231 in tax year
2025 (FY26). By tax year 2030 (FY31) this proposal could reduce revenues to local jurisdictions
by $542,021,186. Table 4 shows the estimated impact by fiscal year.
Table 4: Estimated Revenue ImpactTax Year
(Fiscal
Year)
Blind
Pension
Trust Fund
Local
Collections
2025
(FY26)($1,263,009)($359,495,231)
2026
(FY27)($1,389,086)($395,507,737)
2027
(FY28)($1,519,326)($432,150,833)
2028
(FY29)($1,655,076)($470,623,023)
2029
(FY30)($1,780,641)($506,470,148)
2030
(FY31)($1,906,521)($542,021,186)
Officials from the Department of Revenue note Section 6 of Article X of the Constitution of
Missouri – adds language that all noncommercial motor vehicles in excess of ten years old shall
be exempt from taxation.
Administrative Impact
In order to implement the proposed changes, the Department will be required to:
• Update procedures, manuals, Department website, and correspondence letters;
• Update Department system(s); and
• Train staff.
FY 2023 – Motor Vehicle Bureau
Associate Research/Data Analyst 186 hrs. @ $19.90/hr. = $3,701.40
Lead Administrative Support Asst. 15 hrs. @ $14.83/hr. = $222
Administrative Manager 23 hrs. @ $26.96/hr. = $2,045
FY 2023 – Strategy and Communications Office
Associate Research/Data Analyst hrs. @ $19.90/hr. = $ L.R. No. 0412S.01I
Bill No. SJR 11
Page 6 of
February 14, 2023
KLP:LR:OD
Total Cost = $5,664
Oversight assumes the Department of Revenue is provided with core funding to handle a certain
amount of activity each year. Oversight assumes DOR could absorb the administrative costs
related to this proposal. If multiple bills pass which require additional staffing and duties at
substantial costs, DOR could request funding through the appropriation process.
Revenue Impact
DOR notes this proposed change will affect 41,451 ATV’s, 3,623 motortricycles, 108,614
motorcycles, 228 autocycles, and 3,226,599 passenger registrations. DOR assumes the total
revenue impact to counties is unknown, but will be substantial.
Officials from the Department of Social Services note Section A. Section 6, article X of the
Missouri Constitution is amended to exempt all noncommercial motor vehicles in excess of ten
years old from taxation.
Blind Pension (BP) is funded from 0.03% of each $100 assessed valuation of taxable property.
Reducing the assessment rate of property owners based on the provisions of this legislation could
impact the BP fund.
According to the Missouri Department of Revenue State Tax Commission Annual Report for
2021, $24,686,570,012 of the $128,268,819,238 Total Assessed Valuation for the State of
Missouri comes from personal property. Therefore, personal property comprises 19.25%
($24,686,570,012/128,268,819,238 = 19.25%) of the total taxable property in Missouri.
Property Tax income for the BP fund in SFY 2022 was $39,771,524 or approximately $39.8
million (rounded up). 19.25% is personal property revenue; therefore, the total personal property
revenue for BP is $7,656,018 ($39,771,524*0.1925 = $7,656,018.37, rounded down). FSD made
the assumption that 80% of this personal property revenue for BP is generated from motor
vehicles; therefore, the total estimated personal property revenue from motor vehicles for BP is
$6,124,814 ($7,656,018*.8 = 6,124,814.40, rounded down).
According to the Missouri Department of Revenue, Missouri has a total of 7,108,578 registered
motor vehicles and there are 3,645,822 motor vehicles that are over 10 years old. The
percentage of motor vehicles in Missouri that are at least 10 years old is 51.29%
(3,645,822/7,108,578 = 51.29%). FSD estimates that the current contribution to the BP fund for
this classification of motor vehicles is $3,141,417 ($6,124,814*0.5129 = $3,141,417.10, rounded
down). If these motor vehicles become exempt from taxation, FSD estimates that the potential
impact to the BP fund would be a decrease in the amount collected up to $3,141,417.
Therefore, the fiscal impact to the BP fund would be a decrease of $0 - $3,141,417 in collections
received for the BP fund beginning in SFY 2025. L.R. No. 0412S.01I
Bill No. SJR 11
Page 7 of
February 14, 2023
KLP:LR:OD
Officials from the State Tax Commission note this proposal has a possible negative fiscal
impact on local taxing jurisdictions such as school districts, counties, cities who rely on property
tax assessments as a source of revenue. Under the criteria of SJR 11, all non-commercial
vehicles that are 10 years of age or older would be exempt from personal property taxes. The
value of the vehicles that fall into this category is not known so the impact cannot be determined.
Using information from the Department of Revenue information on total active vehicles by kind
and model year, the total number of active cars, trucks, motorcycles, and tri-cycles is 4,905,302
and 2,474,614 are older than 10 years.
Officials from the Gasconade County Assessor assume this proposal would have a negative
fiscal impact on their respective county of an indeterminate amount.
Officials from the Lincoln County Assessor the fiscal impact from this proposal is apparently
taken care of with mechanisms to replace lost tax revenue.
Officials from Office of the Secretary of State each year, a number of joint resolutions that
would refer to a vote of the people a constitutional amendment and bills that would refer to a
vote of the people the statutory issue in the legislation may be considered by the General
Assembly.
Unless a special election is called for the purpose, Joint Resolutions proposing a constitutional
amendment are submitted to a vote of the people at the next general election. Article XII section
2(b) of the Missouri Constitution authorizes the governor to order a special election for
constitutional amendments referred to the people. If a special election is called to submit a Joint
Resolution to a vote of the people, section 115.063.2 RSMo requires the state to pay the costs.
The cost of the special election has been estimated to be $10 million based on the cost of the
2022 primary and general election reimbursements.
The Secretary of State’s office is required to pay for publishing in local newspapers the full text
of each statewide ballot measure as directed by Article XII, Section 2(b) of the Missouri
Constitution and Section 116.230-116.290, RSMo. Funding for this item is adjusted each year
depending upon the election cycle. A new decision item is requested in odd numbered fiscal
years and the amount requested is dependent upon the estimated number of ballot measures that
will be approved by the General Assembly and the initiative petitions certified for the ballot. In
FY 2014, the General Assembly changed the appropriation so that it was no longer an estimated
appropriation.
For the FY24 petitions cycle, the SOS estimates publication costs at $70,000 per page. This
amount is subject to change based on number of petitions received, length of those petitions and
rates charged by newspaper publishers.
The Secretary of State’s office will continue to assume, for the purposes of this fiscal note, that it
should have the full appropriation authority it needs to meet the publishing requirements.
Because these requirements are mandatory, the SOS reserves the right to request funding to meet L.R. No. 0412S.01I
Bill No. SJR 11
Page 8 of
February 14, 2023
KLP:LR:OD
the cost of the publishing requirements if the Governor and the General Assembly again change
the amount or continue to not designate it as an estimated appropriation.
Oversight has reflected, in this fiscal note, the state potentially reimbursing local political
subdivisions the cost of having this joint resolution voted on during a special election in fiscal
year 2024. This reflects the decision made by the Joint Committee on Legislative Research that
the cost of the elections should be shown in the fiscal note. The next scheduled statewide
primary election is in August 2024 and the next scheduled general election is in November 2024
(both in FY 2025). It is assumed the subject within this proposal could be on one of these ballots;
however, it could also be on a special election called for by the Governor (a different date).
Therefore, Oversight will reflect a potential election cost reimbursement to local political
subdivisions in FY 2024.
Oversight notes, per a report titled the Impact of Transportation on Affordability: An Analysis
of Auto Costs, the authors’ estimate a car depreciates to ten percent of its market value after
approximately 11 years. Based on information from the Bureau of Transportation Statistics,
Oversight estimates the average assessed value for vehicles over ten years old:
Year
Average
New Price
Depreciation
Factor
Est. Market Value
(Depreciated)
Assessed Value
Current 33.3%)
Assessed Value
Proposed 5%
2014$35,500 0.100$ 3,550$ 1,182$178
Assuming an effective tax levy of $6.90, Oversight estimates the change in the tax per car in the
chart below:
Years Old Estimated Tax per
Car - Current
Estimated Tax per
Car - Proposed
Difference11+ (2014 & older)$82 $12 $70
Using the potential number of cars eligible based on information available on Department of
Revenue’s website, the revenue loss to local political subdivisions is estimated at $269,747,520
($70 * 3,853,536).
Oversight notes the Blind Pension Fund (0621) is calculated as an annual tax of three cents on
each one hundred dollars valuation of taxable property ((Total Assessed Value/100)*.03).
Because this proposal limits the assessed value portion of this equation, the Blind Pension Fund
will experience a decrease in revenue relative to what it would have received under current law.
Using a tax levy of .03 per $100 of assessed value, Oversight
car in the chart below:
Years Old Estimated Tax per
Car - Current
Estimated Tax per
Car - Proposed
Difference11+ (2014 & older)$0.35 $0.05 $0.30 L.R. No. 0412S.01I
Bill No. SJR 11
Page 9 of
February 14, 2023
KLP:LR:OD
The loss of revenue to the Blind Pension Fund is estimated at $1,131,098 ($0.30 * 3,770,326).
Oversight notes these estimates include cars older than 10 years but assumes a ten year old
average market value which could overstate the estimated impact. Due to limited data, Oversight
is ultimately uncertain how much of the assessed value of motor vehicles is attributable to
property in excess of ten years or how many are used solely for non-commercial purposes.
Therefore, Oversight will show an impact to the Blind Pension Fund of More than or Less than
the estimate provided by B&P ($1,263,009).
Oversight notes local property tax revenues are designed to be revenue neutral from year to
year. The tax levy is adjusted relative to the assessed value to produce roughly the same revenue
from the prior year with an allowance for growth. Some taxing entities will be able to increase
the tax rate levied on other property to make-up for the lost revenue. Therefore, the revenue lost
to the all taxing entities as a whole may be less than the amount calculated above.
Some taxing entities have tax rate ceilings that are at their statutory or voter approved maximum.
For these taxing entities, any decrease in the assessed values would not be offset by a higher tax
rate (relative to current law) rather it would result in a loss of revenue.
Based on information provided by the Office of the State Auditor, Oversight notes, in 2020,
there were over 2,500 tax entities with 4,000 different tax rates. Of those entities, 2,980 tax rate
ceilings were below the entities’ statutory or voter approved maximum tax rate and 1,098 tax rate
ceilings were at the entities’ statutory or voter approved maximum rate. (These numbers do not
include entities which use a multi-rate method and calculate a separate tax rate for each subclass
of property.)
Oversight assumes there could be costs for county assessors to track and implement these
provisions.
Oversight notes the Office of Administration - Budget and Planning assumes this proposal will
become effective for tax year 2025, with payments due December 31, 2025. B&P assumes this
proposal will decrease revenue to the Blind Pension Trust Fund and to all local jurisdictions.
Oversight does not have any information to the contrary and therefore, Oversight will reflect the
estimates as provided by the Office of Administration - Budget and Planning beginning in FY
2026.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other local political subdivisions 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 2024FY 2025FY 2026 L.R. No. 0412S.01I
Bill No. SJR 11
Page 10 of 11
February 14, 2023
KLP:LR:OD
(10 Mo.)GENERAL REVENUETransfer Out - SOS - reimbursement of
local election authority election costs if
a special election is called by the
Governor
$0 or (More
than
$10,000,000)*$0$0
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 or (More
than
$10,000,000)*$0$0
BLIND PENSION FUNDRevenue (Loss) - from a reduction in
assessed value of motor vehicles -
§137.115.3$0$0
More than or
less than
($1,263,009)
ESTIMATED NET EFFECT ON
THE BLIND PENSION FUND
$0$0
More than or
less than
($1,263,009)
FISCAL IMPACT – Local GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026LOCAL POLITICAL
SUBDIVISIONS
Transfer In - Local Election
Authorities - reimbursement of election
costs by the State for a special election
$0 or More
than
$10,000,000
$0$0
Costs - Local Election Authorities -
cost of a special election if called for by
the Governor
$0 or (More
than
$10,000,000)$0$0
Costs - Assessors - to track and
implement - §137.115.3$0$0 (Unknown) L.R. No. 0412S.01I
Bill No. SJR 11
Page 11 of 11
February 14, 2023
KLP:LR:OD
Revenue (Loss) - from a reduction in
assessed value of motor vehicles -
§137.115.3$0$0
(Unknown,
Could be
substantial)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS$0$0
(Unknown,
Could be
substantial)
FISCAL IMPACT – Small Business
Oversight assumes there could be an impact to small businesses because taxing jurisdictions may
be able to increase the levy to all other property owners to make up for the lost revenue.
FISCAL DESCRIPTION
This resolution exempts noncommercial vehicles in excess of ten years old from property 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
Department of Revenue
Office of Administration - Budget and Planning
Department of Social Services
State Tax Commission
Office of the Secretary of State
Gasconade County Assessor
Lincoln County Assessor
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 14, 2023February 14, 2023