COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1331H.01I Bill No.:HB 660 Subject:Transportation; Boards, Commissions, Committees, And Councils; Political
Subdivisions
Type:Original Date:January 26, 2025Bill Summary:This proposal modifies provisions relating to certain special taxing districts.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1331H.01I
Bill No. HB 660
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total 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 2026FY 2027FY 2028Local Government*$0 or (Unknown)$0 or (Unknown)$0 or (Unknown)
*Oversight assumes special taxing districts could potentially lose revenue if TDDs are exempt
from taxation under 26 U.S.C. Section 501(c), but assumes the loss would not reach the
$250,000 threshold. L.R. No. 1331H.01I
Bill No. HB 660
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FISCAL ANALYSIS
ASSUMPTION
§§67.1421 & 238.225 – Certain Special Taxing Districts
In response to similar legislation from 2023, Perfected HCS for HB 536, officials from the City
of Tipton, the City of Jefferson, Jackson County and the City of Springfield each assumed
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.
§67.007 – Ballot Proposals by Political Subdivisions to impose a new tax or increase the rate of
an existing tax
Officials from the Fruitland Area Fire Protection District state this could impose a fiscal
impact in the event a tax increase was defeated and having to wait to put the measure back on the
ballot. In their case, they do not ask the voters for a tax increase on property tax unless all other
means of funding have been exhausted. With the increasing costs of doing business, they could
be put in a bad financial position if they have to go through two plus years to eventually get a tax
increase passed.
In response to similar legislation from 2023, Perfected HCS for HB 536, officials from the Pettis
County Ambulance District assumed this proposal could potentially cause a shortfall in the
budget for multiple years causing reduction in EMS services to the service area.
In response to similar legislation from 2024, Perfected HCS for HB 2058, officials from the
Branson Police Department
the potential to severely limit the ability to pass public safety sales taxes, impacting the ability
for municipalities and counties to supply adequate public safety services.
Oversight assumes this section of the proposal requires a local political subdivision (LPS) to not
resubmit to the voters any ballot measure imposing a new tax or increasing an existing tax if it
was rejected by the voters of the LPS during the election cycle under section 115.205 or two
years. The proposal also allows a LPS to resubmit to the voters a previously rejected tax proposal
sooner than the election cycle if the new proposal states a “substantial change” as outlined in
subsection 2 of the section. Therefore, Oversight assumes the proposal would not have a direct
fiscal impact.
In response to similar legislation from 2023, Perfected HCS for HB 536, officials from the City
of Springfield, the Kansas City Board of Elections, the St. Joseph Police Department and the
Lincoln County Assessor’s Office
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. L.R. No. 1331H.01I
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§§67.1521, 238.230 & 238.232 – Transportation Development Districts (TDD)
Oversight assumes TDD revenue for LPS could be impacted from this proposal. Oversight does
not have any further information from agencies on the number of TDDs that are tax exempt in
the State of Missouri in order to determine the fiscal impact. Therefore, Oversight will reflect a
$0 or negative unknown impact to LPS that would be less than the $250,000 threshold for this
proposal.
§§115.240, 137.067 & 137.073 – Ballot Language Relating to Taxation
In response to similar legislation from 2024, HB 1517, officials from the Greene County Clerk
assumed the only cost for the County Clerk’s Office is ballot titling. For ballot titling, there is no
cost. However with ballot titling can come legal issues. Therefore, the county estimates the
County Clerk’s Office legal counsel for court appearances, etc. for any ballot titling challenges.
The legal counsel rate is $240 an hour. An estimate of a minimum of 8 hours would be $1,920.
Oversight assumes local political subdivisions could absorb costs related to this proposal.
In response to similar legislation from 2024, HB 1517, officials from the City of Springfield,
Eureka Fire Protection District (EURE) and the Cole Camp Ambulance District each
assumed 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.
Responses regarding the proposed legislation as a whole
Officials from the Office of Administration - Budget and Planning (BAP) defer to the local
governments for the potential fiscal impact of this proposal. BAP assumes 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.
Officials from the Department of Revenue, the Department of Social Services, the
Department of Commerce and Insurance, the Department of Natural Resources, the
Missouri Department of Transportation, Kansas City, Jackson County Board of Elections,
the Platte County Board of Elections, the St. Louis City Board of Elections, the St. Louis
County Board of Elections, the Newton County Health Department, the Phelps County
Sheriff’s OfficeKansas City Police DepartmentSt. Louis County Police
Department and the Joint Committee on Administrative Rules and the State Tax
Commission 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.
L.R. No. 1331H.01I
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In response to similar legislation from 2024, Perfected HCS for HB 2058, officials from the
Office of the State Courts Administrator 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.
Officials from the Office of the Secretary of State (SOS) note many bills considered by the
General Assembly include provisions allowing or requiring agencies to submit rules and
regulations to implement the act. The SOS is provided with core funding to handle a certain
amount of normal activity resulting from each year's legislative session. The fiscal impact for
this fiscal note to the SOS for Administrative Rules is less than $5,000. The SOS recognizes that
this is a small amount and does not expect that additional funding would be required to meet
these costs. However, the SOS also recognizes that many such bills may be passed by the
General Assembly in a given year and that collectively the costs may be in excess of what the
office can sustain with its core budget. Therefore, the SOS reserves the right to request funding
for the cost of supporting administrative rules requirements should the need arise based on a
review of the finally approved bills signed by the governor.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties, county health departments, county assessors, county circuit
clerks, county collectors, county treasurers, local law enforcement agencies, fire protection
districts and ambulance 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 2026
(10 Mo.)
FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL POLITICAL
SUBDIVISIONS
Revenue/Loss – potential revenue loss
to TDD from property tax exemptions
under 26 U.S.C. §501(c) §§67.1521,
238.230 & 238.232 p. 3
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or
(Unknown)
$0 or
(Unknown)
$0 or
(Unknown) L.R. No. 1331H.01I
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FISCAL IMPACT – Small Business
There could be a direct fiscal impact to small businesses from §67.007 if a previous rejected
proposal is resubmitted to the voters and it does not have a substantial change.
FISCAL DESCRIPTION
This bill specifies that if a political subdivision submits a tax proposal for a new or increased tax
authorized under a specific statute and it does not pass, the proposal cannot be submitted again
for two years following the rejection.
The bill allows a political subdivision to reintroduce a previously rejected tax proposal to voters
before the next election cycle if the new proposal introduces a new tax authorized by law or
increases the rate of existing tax authorized by law in a federal- or state-declared natural disaster
area.
The bill requires that if the governing body of a municipality wishes to establish a sales tax by
way of a proposed community improvement district, the ordinance must be approved by a two-
thirds vote of the governing body. Any ordinance or petition approved under these provisions
that establishes a district that is funded by a sales tax is required to pass by at least a two-thirds
majority vote.
This bill exempts non-profit entities pursuant to 26 U.S.C. Section 501(c) from any property tax
or special assessment that might be levied by a taxing district.
This bill also requires that any ballot measure proposing a tax alteration on real property must
clearly state the impact of the proposed change in terms of the actual amount per $100,000 of a
property's market value within the ballot language.
The bill requires that if voters are asked to approve a permanent increase to the tax rate ceiling
before a temporary levy increase expires, the ballot language must clearly indicate that if the
permanent increase is approved, the temporary levy will become permanent.
The bill defines "current tax rate ceiling" and "increased tax rate ceiling". When a majority of
voters in a political subdivision approve a tax rate increase, the subdivision must use the current
tax rate ceiling and the approved increase for the following tax year. If the assessed valuation of
real property decreases in that year, the subdivision can adjust its levy rates to ensure it receives
the same revenue it would have received without the property value reduction. The use of the
increased tax rate ceiling must be revenue neutral, as mandated by the Missouri Constitution.
This bill further requires that any project proposals from a transportation development district be
submitted to the Missouri Highways and Transportation Commission, or to the local
transportation authority, as applicable, for approval prior to the construction or funding of any L.R. No. 1331H.01I
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project. The Missouri Highways and Transportation Commission, or the local transportation
authority, as applicable, must approve the project by a two-thirds majority if the proposed project
is to be funded by a sales 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
Kansas City
Tipton
Springfield
Jefferson City
Jackson County
Pettis County Ambulance District
Office of Administration
Budget and Planning
Department of Social Services
Jackson County Board of Elections
Kansas City Board of Elections
Platte County Board of Elections
St. Louis County Board of Elections
Lincoln County Assessor’s Office
St. Joseph Police Department
Department of Revenue
Office of the State Courts Administrator
Department of Commerce and Insurance
Department of Natural Resources
Missouri Department of Transportation
Office of the Secretary of State
Phelps County Sheriff’s Office
Branson Police Department
Kansas City Police Department
St. Louis County Police Department
Fruitland Area Fire Protection District
State Tax Commission
St. Louis City Board of Elections
Joint Committee on Administrative Rules
Greene County Clerk L.R. No. 1331H.01I
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Newton County Health Department
Eureka Fire Protection District
Cole Camp Ambulance District
Julie MorffJessica HarrisDirectorAssistant DirectorJanuary 26, 2025January 26, 2025