COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1079S.01T Bill No.:Truly Agreed To and Finally Passed SJR 26 Subject:Taxation and Revenue - Property; Children and Minors; Constitutional
Amendments
Type:Original Date:May 31, 2023Bill Summary:This constitutional amendment authorizes a property tax exemption for
certain property used for childcare.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2024FY 2025FY 2026
General Revenue*
$0 or (More than
$10,000,000)
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.
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. 1079S.01T
Bill No. Truly Agreed To and Finally Passed SJR 26
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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$0
*Potential costs and state reimbursements net to zero in FY 2024 if a special election is called. L.R. No. 1079S.01T
Bill No. Truly Agreed To and Finally Passed SJR 26
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FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration - Budget and Planning (B&P) note this proposal
would go to public vote in November 2024. For the purpose of this fiscal note, B&P assumes
that the tax exemption would begin January 1, 2025 if voter approved.
This proposal would allow certain property to become exempt from real and/or personal property
taxation. The property must be used primarily for childcare outside of a child’s home. B&P notes
that this proposal is only enabling language to allow a property tax exemption under statute, this
proposal would not itself create the exemption. Therefore, any potential revenue impact(s) would
be discussed in the fiscal notes for subsequent legislation.
Officials from the Department of Social Services (DSS) note Section A. Section 6, article X of
the Missouri Constitution is amended to exempt from taxation all real and personal property used
primarily for childcare provided to children outside of their home.
DSS notes the Blind Pension (BP) is funded from 0.03% of each $100 assessed valuation of
taxable property. Exempting properties from taxation will affect the growth of the Blind Pension
fund, but will not decrease the current amount collected in the fund.
DSS notes property tax income for the BP Fund in SFY 2022 was $39,771,524 or approximately
$39.8 million (rounded up). The amount collected from real and personal property used primarily
for childcare provided to children outside of their home is unknown. To determine the impact of
this legislation, FSD made the assumption that up to 1% of all property is used to provide
childcare. 1% of the property tax revenue collected for the BP fund is $397,715 ($39,771,524 *
.01 = $397,715.24, rounded down).
Therefore, DSS assumes the impact to the BP fund is up to $397,715 beginning in SFY 25.
Officials from the City of Kansas City assume there is a fiscal impact of an indeterminate
amount.
Officials from the Kansas City Health Department assume there is a fiscal impact of an
indeterminate amount.
Officials from the St. Charles Community College – 2 anticipate a negative fiscal impact. The
amount can’t be quantified with the information available. L.R. No. 1079S.01T
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Oversight notes according to the Department of Elementary and Secondary Education’s website,
there were 738 active in-home/group home childcare providers in Missouri as of January 2023.
Oversight notes this proposal is only enabling language to allow governing bodies to pass laws
relating to property tax exemption for all real and personal property used primarily for childcare
provided to children outside of their home. Therefore, Oversight will show only the potential
election cost in FY 2024 and assume any potential fiscal impact would be included in the fiscal
note for the ‘general laws’ enacting this property tax exemption.
Oversight received a limited number of responses from local political subdivisions related to the
fiscal impact of this proposal. Oversight has presented this fiscal note on the best current
information available.
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 general listing of political subdivisions included in the Missouri Legislative
Information System database is available upon request.
Officials from Office of the Secretary of State (SOS) assume, 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. L.R. No. 1079S.01T
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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
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.
Officials from the State Tax Commission, Department of Health and Senior Services,
Department of Revenue, Office of the State Auditor, Joint Committee on Administrative
Rules, and the Joint Committee on Public Employee Retirement 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 Newton County Health Department, City of Springfield, City of Urich,
Lincoln County Assessor, Phelps County Sheriff, and the St. Louis County Police Dept 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.
FISCAL IMPACT – State GovernmentFY 2024
(10 Mo.)
FY 2025FY 2026GENERAL 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 L.R. No. 1079S.01T
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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
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS$0$0$0
FISCAL IMPACT – Small Business
Certain small childcare business owners may be impacted, pending voter approval and if
enacting general laws are passed.
FISCAL DESCRIPTION
This constitutional amendment, if approved by the voters, would allow under general law an
exemption from property tax all real and personal property used primarily for the care of a child
outside of his or her home.
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
State Tax Commission
Department of Social Services
Department of Revenue
Office of Administration - Budget and Planning
Office of the Secretary of State
Department of Health and Senior Services
Office of the State Auditor
Joint Committee on Administrative Rules
Joint Committee on Public Employee Retirement
City of Springfield L.R. No. 1079S.01T
Bill No. Truly Agreed To and Finally Passed SJR 26
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City of Urich
Lincoln County Assessor
Phelps County Sheriff
St. Louis County Police Dept
Newton County Health Department
City of Kansas City
Kansas City Health Department
St. Charles Community College
Julie MorffRoss StropeDirectorAssistant DirectorMay 31, 2023May 31, 2023