COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0535H.01I Bill No.:HJR 43 Subject:Constitutional Amendments; Department of Conservation; Department of Natural
Resources; Political Subdivisions; Taxation and Revenue - Sales and Use;
Taxation and Revenue - Property
Type:Original Date:February 18, 2025Bill Summary:This joint resolution proposes a constitutional amendment changing the
membership of the Conservation Commission, the conservation sales and
use tax, and the Department of Conservation's property tax exemption.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028
General Revenue*
$0 or (More than
$8,000,000)$0$0
Total Estimated Net
Effect on General
Revenue
$0 or (More than
$8,000,000)$0$0
*Costs only if the Governor calls a special election.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Conservation
Commission Funds*$0 or ($17,057,876)$0 or ($34,115,752)
$0 or Up to
($7,410,652,787)**
Division of State
Parks Funds (DNR)*$0 or $8,528,938$0 or $17,057,876$0 or $17,057,876
Total Estimated Net
Effect on Other State
Funds$0 or ($8,528,938)$0 or ($17,057,876)
$0 or Up to
($7,393,594,911)
*Oversight notes the joint resolution diverts 10% of total funds from the conservation sales and
use tax to the Department of Natural Resources (Division of State Parks) and 10% to local
political subdivisions in which land owned by the MDC is located. Oversight has reflected the
impact as “$0 or” depending upon voter approval.
** Potential to require MDC to pay an amount equal to the total amount in real property taxes
collected within a political subdivision on all privately held properties. Oversight notes receipts L.R. No. 0535H.01I
Bill No. HJR 43
Page 2 of
February 18, 2025
KB:LR:OD
to the Conservation Commission Fund totaled $283,007,163 in FY 2024. Oversight is uncertain
if other funds would be utilized for this payment.
Numbers within parentheses: () indicate costs or losses.
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 2028
Local Government$0 or $8,528,938$0 or $17,057,876
$0 or Up to
$7,393,594,911 L.R. No. 0535H.01I
Bill No. HJR 43
Page 3 of
February 18, 2025
KB:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Officials from the Missouri Department of Conservation (MDC) assume this proposal will
have an unknown fiscal impact. The Conservation Sales Tax funds are derived from one-eighth
of one percent sales and use tax pursuant to Article IV Section 43 (a) of the Missouri
Constitution. The Department defers to the Department of Revenue as it is responsible for tax
collection and would be better able to estimate the anticipated fiscal impact that would result
from this proposal.
Oversight notes the joint resolution diverts 10% of total funds from the conservation sales and
use tax to the Department of Natural Resources (Division of State Parks) and another 10% to
local political subdivisions in which land owned by the MDC is located.
Officials from the Department of Natural Resources (DNR)
of Revenue for the potential fiscal impact of this proposal.
Officials from the Department of Revenue (DOR) assume the following regarding this
proposal:
This proposal is a constitutional amendment that would be voted on at the November 2026
election. If not adopted, then these changes would not be implemented, and this would not have
a fiscal impact.
If adopted the following is the estimated impact:
Section 40(a) Conservation Commission Membership
This provision modifies the makeup and functioning of the Missouri Conservation Commission.
These provisions do not fiscally impact DOR.
Section 40(b) Repeal of Conservation Commission old language
This provision does not fiscally impact DOR.
Section 43(a) Conservation Commission Sales Tax
Currently the state sales tax collected includes a 0.125% dedicated sales tax for the Conservation
Commission. The entire sales tax is provided to the Conservation Commission for their funding.
DOR collects and distributes the funding of the state sales tax.
This proposal would, starting on January 1, 2027, change the distribution of the 0.125% sales
tax. It states the entire revenue generated from the sales tax is to be expended as follows:
10% to the Department of Natural Resource’s State Parks Division
10% to local political subdivisions where conservation land is located. L.R. No. 0535H.01I
Bill No. HJR 43
Page 4 of
February 18, 2025
KB:LR:OD
Therefore, only the remaining 80% that is collected will be distributed to the Conservation
Commission. In FY 2024, the Conservation Commission received $170,578,762 for the state
sales tax. Under this proposal $17,057,876 would be distributed to DNR’s State Parks Division
and to the local political subdivisions. The remaining $136,463,010 would be distributed to the
Conservation Commission.
This proposal would require DOR to update their sales tax distribution computer programs at a
cost of $25,000.
Section 43(b) & 43(c)
This language will not fiscally impact DOR.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by DOR. Oversight will reflect a $0 (voters do not approve of the
constitutional amendment) or $17,057,876 increase in revenue to Department of Natural
Resources and $17,057,876 to local political subdivisions. Oversight will reflect a $0 (voters do
not approve of the constitutional amendment) or a loss of $34,115,752 to MDC. If approved,
Oversight will assume six months (starting January 1, 2026) of impact in FY 2026.
Officials from the Office of Administration - Budget and Planning (B&P) assume the
following regarding this proposal:
B&P notes that this proposal requires voter approval at the next general election in November
2026. For the purpose of this fiscal note, B&P assumes that if voter approved this proposal will
become effective January 1, 2027.
Article IV, Section 40 – MDC Commission
This provision makes changes to the MDC commission. B&P defers to MDC for any impacts
from these provisions.
Article IV, Section 43(a) – MDC Sales Tax
This provision would divert a portion of the 0.125% conservation sales tax. Beginning January
2027, 10% of the tax would be diverted to DNR – State parks and another 10% would be
diverted to local subdivisions where MDC owns land.
Monies shall be apportioned to locals based on the number of acres of land owned by MDC
within that political subdivision. However, the monies are also to be divided and distributed to
each political subdivision based on the proportion of other real property tax revenues. B&P notes
that this language appears to conflict as a political subdivision may contain more acres of land
owned by MDC but would normally receive a smaller proportion of property tax (perhaps due to
a lower tax rate). L.R. No. 0535H.01I
Bill No. HJR 43
Page 5 of
February 18, 2025
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B&P assumes that such political subdivision would receive monies in proportion to their
property tax rather than the acres of land owned by MDC as the language states that the money
shall be “apportioned” based on land, but “distributed” based on property tax.
In FY 2024, MDC received $170,578,762 in sales tax collections. Therefore, BP estimates that
this provision could increase DNR funding by $17,057,876 and local funding by $17,057,876,
while decreasing MDC funding by $34,115,752 annually.
Article IV, Section 43(b) – MDC In Lieu of Property Tax
This provision would change the amount of monies paid by MDC in lieu of property tax. This
provision also requires general assembly approval prior to any land purchases by MDC.
B&P notes that the language in this proposal changes the in lieu of tax from “…the tax being
paid at the time of purchase…” to “…the tax being paid on real property owned by private
citizens within such political subdivision as determined by the annual assessment…”.
B&P notes that the term “private citizen” is not defined. It is unclear whether this would only
include individuals (residential real property) or could also include businesses (commercial real
property).
In addition, this language appears to require MDC to pay an amount equal to the total amount in
real property taxes collected within a political subdivision on all privately held properties. B&P
notes that MDC owns or has forest cropland in every county.
Based on data published by the State Tax Commission, approximately $10,230,980,631 in
property taxes were paid for tax year 2023. Of that, 52.63% was for residential real property and
19.47% was for commercial property. Therefore, B&P estimates that MDC could be required to
pay political subdivisions up to $5,384,565,106 ($10,230,980,631 x 52.63% residential real
property) or up to $7,376,537,035 (($10,230,980,631 x (52.63% residential real property +
19.47% commercial property)) starting with tax year 2027 (FY 2028). B&P notes that the total
MDC budget for FY 2025 is $214,789,816.
Oversight does not have information to the contrary and therefore, Oversight will reflect the
estimates as provided by B&P. Oversight will reflect the costs to MDC from paying political
subdivisions for property taxes as $0 (voters do not approve the resolution) or “Up to…” the
amounts provided by B&P in FY 2028 as the language is unclear as to how residential real
property is defined.
Officials from the Attorney General’s Office (AGO) assume any potential litigation costs
arising from this proposal can be absorbed with existing resources. The AGO may seek
additional appropriations if the proposal results in a significant increase in litigation or
investigation costs. L.R. No. 0535H.01I
Bill No. HJR 43
Page 6 of
February 18, 2025
KB:LR:OD
Oversight assumes AGO is provided with core funding to handle a certain amount of activity
each year. Oversight assumes AGO could absorb the costs related to this proposal. If multiple
bills pass which require additional staffing and duties at substantial costs, AGO could request
funding through the appropriation process.Officials from the AGO assume the proposal will
have no fiscal impact on their organization.
Officials from the Office of the Governor (GOV) assume this bill adds to the Governor’s
current load of appointment duties. Individually, additional requirements should not fiscally
impact the Office of the Governor. However, the cumulative impact of additional appointment
duties across all enacted legislation may require additional resources for the Office of the
Governor.
Oversight assumes GOV is provided with core funding to handle a certain amount of activity
each year. Oversight assumes GOV could absorb the costs related to this proposal. If multiple
bills pass which require additional staffing and duties at substantial costs, GOV could request
funding through the appropriation process.Officials from the GOV assume the proposal will
have no fiscal impact on their organization.
Officials from the Missouri House of Representatives, Missouri Senate, Department of
Social Services, State Tax Commission and Joint Committee on Administrative Rules 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 City of Kansas City 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.
Oversight assumes there could be a potential increase to property tax revenue to the Blind
Pension Fund and local political subdivisions from Article IV, Section 43(b).2 for property
acquired by the commission. However, Oversight assumes this amount would be minimal.
Therefore, Oversight will reflect a zero impact in the fiscal note for this provision.
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.
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. L.R. No. 0535H.01I
Bill No. HJR 43
Page 7 of
February 18, 2025
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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 $8 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 FY26 petitions cycle, the SOS estimates publication costs at $60,000 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 2026. 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 general
election is in November 2026 (FY 2027). It is assumed the subject within this proposal could be
on this ballot; 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 2026. L.R. No. 0535H.01I
Bill No. HJR 43
Page 8 of
February 18, 2025
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FISCAL IMPACT – State GovernmentFY 2026
(6 Mo.)
FY 2027FY 2028GENERAL REVENUE FUNDTransfer Out - SOS - reimbursement of
local election authority election costs if
a special election is called by the
Governor
$0 or (More
than
$8,000,000)$0$0
ESTIMATED NET EFFECT ON
THE GENERAL REVENUE FUND
$0 or (More
than
$8,000,000)$0$0
CONSERVATION COMMISSION
FUNDS
Transfer Out – MDC – 20% to DNR
and local political subdivisions
$0 or
($17,057,876)
$0 or
($34,115,752)
$0 or
($34,115,752)
Transfer Out – MDC –to local political
subdivisions for property taxes$0$0
$0 or Up to
($7,376,537,035
ESTIMATED NET EFFECT ON
CONSERVATION COMMISSION
FUNDS
$0 or
($17,057,876)
$0 or
($34,115,752)
$0 or Up to
($7,410,652,787)
DIVISION OF STATE PARKS
FUNDS (DNR)
Transfer In – DNR – 10% of
conservation sales and use tax proceeds
$0 or
$8,528,938
$0 or
$17,057,876
$0 or
$17,057,876
ESTIMATED NET EFFECT ON
DIVISION OF STATE PARKS
FUNDS (DNR)
$0 or
$8,528,938
$0 or
$17,057,876
$0 or
$17,057,876 L.R. No. 0535H.01I
Bill No. HJR 43
Page 9 of
February 18, 2025
KB:LR:OD
FISCAL IMPACT – Local GovernmentFY 2026
(6 Mo.)
FY 2027FY 2028LOCAL POLITICAL
SUBDIVISIONS
Transfer In - 10% of conservation sales
and use tax proceeds
$0 or
$8,528,938
$0 or
$17,057,876
$0 or
$17,057,876
Transfer In - Local Election Authorities
- reimbursement of election costs by the
State for a special election
$0 or More
than
$8,000,000$0$0
Transfer In – from MDC - equal to the
total amount in real property taxes
collected$0$0
$0 or Up to
$7,376,537,035
Costs - Local Election Authorities - cost
of a special election if called for by the
Governor
$0 or (More
than
$8,000,000)$0$0
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 or
$8,528,938
$0 or
$17,057,876
$0 or Up to
$7,393,594,911
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
Currently, the Conservation Commission consists of four members appointed by the Governor
with not more than two members from the same political party. If approved by the voters, this
resolution would allow the number, qualifications, and terms of the Commission members to be
set by law, with no more than half of the members from the same political party and each
member residing in a different Congressional district, as specified in the bill.
The resolution specifies that if the Governor fails to fill a vacancy on the Commission within 30
days, the remaining members shall fill the vacancy by a majority vote from a list of 10
individuals provided by the General Assembly. The General Assembly will develop the list of
individuals as specified in the resolution. L.R. No. 0535H.01I
Bill No. HJR 43
Page 10 of 11
February 18, 2025
KB:LR:OD
The resolution also would prohibit any member from accepting a gift of any value from anyone
who receives or has received compensation from or performs a service for the Commission.
If a member receives a gift, the Missouri Ethic Commission must investigate as specified in the
bill. If found to have violated the prohibition, the Commission member shall vacate the office.
The Ethic Commission must forward its findings to the Attorney General for prosecution.
Anyone who enters into a contract with the Conservation Commission must report, as specified
in the resolution, each item, service, or thing of value provided to each member of the
Commission or any person related to a Commissioner within the first degree of consanguinity.
The resolution also specifies that beginning on January 1 the year following approval, 10% of
revenue derived from the Conservation Sales and Use Tax will go for duties and responsibilities
of the Division of State Parks within the Department of Natural Resources and 10% for the
duties and responsibilities of local political subdivisions in which land owned by the Department
of Conservation is located.
The resolution specifies the manner in which the portion of the revenues to local political
subdivisions is to be distributed.
The resolution also requires the Department of Conservation to pay property taxes on real
property in the amount not less than that private citizens would be required to pay. The General
Assembly must also review any proposed sale or purchase of real property by the Department of
Conservation prior to the transaction being final.
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
Missouri Department of Conservation
Department of Natural Resources
Office of the Governor
Department of Revenue
Missouri House of Representatives
Missouri Senate
State Tax Commission
Joint Committee on Administrative Rules L.R. No. 0535H.01I
Bill No. HJR 43
Page 11 of 11
February 18, 2025
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Office of the Secretary of State
Department of Social Services
City of Kansas City
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 18, 2025February 18, 2025