COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1516S.01I Bill No.:SJR 35 Subject:Taxation and Revenue - Property; Constitutional Amendments Type:Original Date:February 2, 2023Bill Summary:This proposal modifies provisions relating to property taxes.
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 2026Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1516S.01I
Bill No. SJR 35
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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. 1516S.01I
Bill No. SJR 35
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FISCAL ANALYSIS
ASSUMPTION
Officials from Office of the Secretary of State 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.
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). L.R. No. 1516S.01I
Bill No. SJR 35
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Therefore, Oversight will reflect a potential election cost reimbursement to local political
subdivisions in FY 2024.
Officials from Jackson County, Platte County, St. Louis City Board of Election
Commissioners (BEC), St. Louis County, and the Lincoln County Assessor, 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 State Tax Commission assume 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 this agency. Oversight assumes a fiscal
impact to local property tax collections would be predicated upon an action by the elected
governing body of the county. Therefore, Oversight will assume this joint resolution by itself,
would not create a fiscal impact other than the possibility of special election costs.
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. Upon the receipt of additional responses, Oversight will review to
determine if an updated fiscal note should be prepared and seek the necessary approval to
publish a new fiscal note.
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 (MOLIS) database is available upon request.
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
*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. L.R. No. 1516S.01I
Bill No. SJR 35
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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
*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.
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Current law requires a county to levy a replacement tax on all real property that is not residential,
agricultural, or horticultural in order to replace revenue lost due to the exemption from property
tax of certain personal property, and allows such levy to be decreased if approved by a majority
of voters in such county. This constitutional amendment, if approved by the voters, also
authorizes such levy to be decreased by the elected governing body of the county.
This amendment also applies current property tax levy rollback provisions to the replacement tax
levy.
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. 1516S.01I
Bill No. SJR 35
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SOURCES OF INFORMATION
Office of the Secretary of State
State Tax Commission
Jackson County
Platte County
St. Louis City BEC
St. Louis County
Lincoln County Assessor
Julie MorffRoss StropeDirectorAssistant DirectorFebruary 2, 2023February 2, 2023