COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1328H.02C Bill No.:HCS for HB 708 Subject:Taxation and Revenue - Property; Property, Real and Personal; Motor Vehicles;
Insurance - Automobile; Counties
Type:Original Date:March 12, 2025Bill Summary:This proposal authorizes provisions to allow local taxing entities to establish
totaled motor vehicle personal property tax proration programs for certain
taxpayers to reduce property tax bills.
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. 1328H.02C
Bill No. HCS for HB 708
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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$0 or (Unknown)$0 or (Unknown) L.R. No. 1328H.02C
Bill No. HCS for HB 708
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FISCAL ANALYSIS
ASSUMPTION
Section 139.035 - Totaled Motor Vehicle Property Tax Proration Program
In response to a previous version (HB 708), officials from the Office of Administration -
Budget and Planning (B&P) note this proposal would allow counties or other political
subdivisions that levy a property tax to offer a tax credit offsetting a portion of personal property
tax owed if a motor vehicle is totaled during the tax year.
B&P notes that a county assessor handles property taxes assessments and billings. However,
within that county may be multiple different property tax levy districts with multiple different
boundaries. It is unclear whether this proposal would impact sub-county level districts if the
proration program was approved at the county level.
In addition, the Blind Pension Trust Fund levies a tax of $0.03 per $100 on all property in
Missouri. It is unclear whether the property tax credit would also be applied to the statewide
levy. Therefore, this proposal may reduce TSR and revenues to the Blind Pension Fund by an
unknown amount.
In response to a previous version (HB 708), officials from the City of Kansas City assume the
proposed legislation has a potentially negative fiscal impact of an indeterminate amount.
In response to a previous version (HB 708), officials from the Callaway County SB 40 Board
assume the proposed legislation has a fiscal impact of an indeterminate amount.
In response to a previous version (HB 708), officials from the Lawrence County SB 40 Board,
considered a political subdivision, utilizes a portion of the property taxes collected each year to
provide services and opportunities for individuals with Intellectual Disabilities and
Developmental Disabilities within Lawrence County. The money is used for grants, funding
(with other entities) of the local Sheltered Workshop, Transportation assistance through OATS
transportation, a community center for this population, handicap accessible playground
equipment in some city parks, etc. Any reduction in property taxes takes away funds that can
help one of the most vulnerable populations, the intellectually and developmentally disabled.
In response to a previous version (HB 708), officials from the County Employees’ Retirement
Fund (CERF) have reviewed this proposal. CERF’s review of this proposal would indicate that
it may result in reductions in contribution revenue to CERF of an unknown amount annually. A
certain portion of the moneys that are used to fund the County Employees’ Retirement Fund are
tied to the collection of property taxes. Data is not available to quantify how taxing entities’
adoption of a totaled motor vehicle personal property tax proration program would impact
contribution revenue but CERF assumes there may be a negative impact. L.R. No. 1328H.02C
Bill No. HCS for HB 708
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Officials from the Department of Social Services, Branson Police Dept, , Kansas City Police
Department, Newton County Health Department, 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.
In response to a previous version (HB 708), officials from the Mid-Continent Public Library
and the 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.
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 does not appear to impact the assessed value portion of this equation,
Oversight assumes the Blind Pension Fund will not be impacted under this proposal. If this
assumption is incorrect, this would alter the fiscal impact as presented in this fiscal note.
Oversight notes under current law, a vehicle is considered a total loss if damage exceeds 80% of
the fair market value.
Oversight notes according to LexisNexis Risk Solutions’ latest Auto Insurance Trends report,
27% of collision claims were total losses for 2022.
Oversight notes the proposed personal property tax proration program is optional, therefore
Oversight assumes local taxing entities that choose to implement the proposed personal property
tax credit would have a negative fiscal impact. Oversight is unable to determine which local
taxing entities will participate and subsequently how much personal property tax would be
credited back to taxpayers.
Therefore, Oversight will show a range of $0 (no local taxing entities implement the proposed
program) to an unknown negative amount.
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 listing of political subdivisions included in the Missouri Legislative Information
System (MOLIS) database is available upon request.
Rule Promulgation L.R. No. 1328H.02C
Bill No. HCS for HB 708
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In response to a previous version (HB 708), officials from the Joint Committee on
Administrative Rules assume this proposal is not anticipated to cause a fiscal impact beyond its
current appropriation.
In response to a previous version (HB 708), 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.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL POLITICAL
SUBDIVISIONS
Potential Revenue Reduction -
§139.035 - Totaled Motor Vehicle
Property Tax Proration Program if
county chooses to implement program$0
$0 or
(Unknown)
$0 or
(Unknown)
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS$0
$0 or
(Unknown)
$0 or
(Unknown)
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 1328H.02C
Bill No. HCS for HB 708
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FISCAL DESCRIPTION
This bill allows a taxing authority to establish a proration program for payments of personal
property on totaled motor vehicles. The taxing authority may award a prorated property tax
credit during the tax year to reduce the total personal property tax owed on a totaled motor
vehicle and claimed against the amount of personal property tax due at the end of the same tax
year.
The prorated property tax credit must be prorated on a monthly basis. The amount of the credit is
determined by a ratio, where the numerator must be the number of full months from the date of
disposition of the totaled motor vehicle continuing through the close of the tax year, and the
denominator is 12. The prorated property tax credit is nonrefundable but may reduce the tax
liability to zero.
A taxpayer may apply for this program if:
(1) The totaled vehicle was owned, registered, and titled under the taxpayer's name as of
January 1 of the tax year in which the vehicle was totaled; or if owned by a business, the
name of the business or authorized agent;
(2) The totaled vehicle was included on the local taxing entity's tax roll, and the taxpayer
was liable for personal property taxes on the totaled vehicle;
(3) The taxpayer was up to date on all state and local taxes and fees owed on the totaled
vehicle; and
(4) The title on the totaled vehicle has been transferred to the insurance company and is
no longer titled or registered to the taxpayer nor in the taxpayer's possession;
If a taxpayer who participates in this program purchases a replacement vehicle during the same
tax year that the taxpayer's vehicle was totaled and he or she received a prorated property tax
credit, the replacement vehicle will not be included in the tax rolls for that tax year to offset the
property tax liability. Taxation of the replacement vehicle must follow the normal assessment
procedures.
A taxing entity must adopt a personal property tax proration program by way of an ordinance.
The ordinance must include the following:
(1) Procedures and deadlines for application and participation in the program, as well as
required documentation, as specified in the bill;
(2) Procedures for verification and record keeping of the prorated property tax credit
amount, as well as the amount of personal property tax to be modified; L.R. No. 1328H.02C
Bill No. HCS for HB 708
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(3) Creation of a form for use by taxpayers;
(4) Procedures for the crediting of the amount of the prorated property tax credit toward
the taxpayer's personal property taxes; and
(5) Any other provision the taxing entity deems reasonable and necessary to implement
and carry out the program.
The taxing entity may by ordinance establish rules and procedures for the program, and must
make the information regarding the program available to the taxpayers.
A taxpayer who participates in the program will not have his or her right to protest the amount of
the tax payments affected.
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 (B&P)
City of Kansas City
Department of Social Services
State Tax Commission
Newton County Health Department
Kansas City Police Department
St Louis County Police Dept.
Joint Committee on Administrative Rules
Office of the Secretary of State (SOS)
Callaway County SB 40 Board
Lawrence County SB 40 Board
Mid-Continent Public Library
County Employees’ Retirement Fund
Branson Police Department
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 12, 2025March 12, 2025