COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:4387S.02I Bill No.:SB 1324 Subject:Housing; Mortgages and Deeds; Property, Real and Personal; Taxation and
Revenue - Property; Taxation and Revenue - General; Corporations; Contracts and
Contractors; Easements and Conveyances
Type:Original Date:April 5, 2024Bill Summary:This proposal enacts the "Missouri Uniform Homeowners' Association Act".
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Blind Pension Fund
(0621)* $0 (Unknown) (Unknown)
Total Estimated Net
Effect on Other State
Funds $0 (Unknown) (Unknown)
Numbers within parentheses: () indicate costs or losses.
*Oversight assumes the provisions of this proposal would not reach the $250,000 threshold.
Oversight is unclear of the number of homeowner associations in the State of Missouri and how
much personal property and common ground is owned and/or leased by them. Homeowner
Associations would need to have an assessed value of personal property and common ground
greater than $833,333,334 in order to meet the $250,000 threshold. L.R. No. 4387S.02I
Bill No. SB 1324
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total 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 2025FY 2026FY 2027Local Government$0 (Unknown) (Unknown) L.R. No. 4387S.02I
Bill No. SB 1324
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FISCAL ANALYSIS
ASSUMPTION
§§448.300, 448.305, 448.310, 448.315, 448.320, 448.325, 448.330, 448.335, 448.340 & 448.345
– Missouri Homeowners’ Association Act
In response to similar legislation from this year, HB 2270, officials from the Office of
Administration - Budget and Planning (B&P) stated, to the extent this exempts real and
personal property currently subject to taxes, this proposal could impact revenues to the Blind
Pension Trust Fund and TSR.
Officials from the State Tax Commission (STC) have determined that this bill will have an
unknown, small negative impact on revenues for school districts, counties, cities, fire districts
and other local taxing jurisdictions supported by property tax revenues. STC was unable to
calculate the impact because data regarding the number of homeowner associations who could
benefit from not paying real or personal property on their property is unknown.
Oversight does not have information to the contrary. Oversight assumes if this proposal goes
into effect as of January 1, 2025, it would exempt taxation on personal property and common
ground owned and/or leased by homeowner associations and could potentially reduce the amount
of revenue that is received by the Blind Pension Fund and local political subdivisions such as
school districts, counties and cities. Therefore, Oversight will reflect a $0 or unknown negative
loss of revenue as assumed by the B&P and the STC for the fiscal impact of this proposal,
starting in FY 2026.
Officials from the Department of Economic DevelopmentDepartment of Labor and
Industrial Relations, the Missouri Department of Transportation, the Department of
Revenue, the Office of the Secretary of State and Kansas City 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.
In response to similar legislation from this year, HB 2270, officials from the Office of the State
Courts Administrator 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.
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. L.R. No. 4387S.02I
Bill No. SB 1324
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FISCAL IMPACT – State GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027BLIND PENSION FUND (0621)Revenue Loss – exempting taxation on
personal property and common ground
of homeowner associations §448.320$0(Unknown)(Unknown)
ESTIMATED NET EFFECT ON
THE BLIND PENSION FUND
(0621) $0 (Unknown)(Unknown)
FISCAL IMPACT – Local GovernmentFY 2025
(10 Mo.)
FY 2026FY 2027LOCAL POLITICAL
SUBDIVISIONS
Revenue Loss – exempting taxation on
personal property and common ground
of homeowner associations §448.320$0 (Unknown)(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS$0 (Unknown)(Unknown)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
This act enacts the "Missouri Uniform Homeowners' Association Act". The act shall apply with
respect to events occurring after January 1, 2025, and shall not modify existing binding
agreements running with land. The provisions of the act shall not be varied by agreement, or
waived.
Each lot, as defined in the act, shall constitute a separate parcel of real estate, assessed and taxed
consistent with its restricted use. Common ground and property of the association shall not be
subject to taxation.
The act further specifies procedures for amending the declarations creating a planned
community, and for appealing the amendments. L.R. No. 4387S.02I
Bill No. SB 1324
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An owners association shall be organized prior to conveyance of the first lot in a planned
community, and shall be incorporated as a mutual benefit nonprofit corporation within 1 year of
the transfer of control from the declarant.
The act provides for the owners associations to be governed by a board of directors, and specifies
election procedures. The act further lays out procedures for establishing an association's budget
and assessments on lot owners; provides that any provision in the association's governing
documents specifying a maximum assessment or maximum assessment increase shall be void;
and details procedures for recovering delinquent assessments through the courts, including
actions against tenants.
Lastly, the act includes provisions regarding binding arbitration, and regarding nonbinding
dispute resolution between lot owners.
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 Administration - Budget and Planning
Office of the Secretary of State
State Tax Commission
Office of the State Courts Administrator
Department of Economic Development
Department of Labor and Industrial Relations
Missouri Department of Transportation
Department of Revenue
Kansas City
Julie MorffRoss StropeDirectorAssistant DirectorApril 5, 2024April 5, 2024