HCS HB 1392 -- SCHOOL DISTRICT TAX SURCHARGES

SPONSOR:  Franklin (Davis)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Education-
Elementary and Secondary by a vote of 15 to 5 with 1 present.

This substitute allows school districts to adopt by voter
approval a personal income tax, which would be a surcharge on
state personal income tax of up to 15%.  The school district must
specify the purpose of the tax and the period of time for which
the tax will be imposed, not to exceed three years for any
purpose except property tax reduction, which may be up to five
years.  Moneys raised by the tax would not be deducted from a
district's state school aid when used for a purpose other than
property tax reduction; a property tax equivalent figure will be
used in the funding formula when the surcharge is for property
tax reduction.  The substitute contains technical provisions for
the handling and transfer of funds and for the conduct of the
elections.

FISCAL NOTE:  Estimated Net Effect on General Revenue Fund of a
Cost of Unknown to an Income of $6,902,497 in FY 2003, a Cost of
Unknown to an Income of $14,460,000 in FY 2004, and a Cost of
Unknown to an Income of $15,030,000 in FY 2005.

PROPONENTS:  Supporters say that districts need more options for
funding, especially for capital funding.  One supporter voiced
concern that equity may be disrupted, but acknowledged that
districts currently lack alternative methods to raise funds.
Some states, such as Iowa, have established local option taxes
for school districts.

Testifying for the bill were Representatives Holand and Davis;
Missouri State Teachers Association; and Missouri National
Education Association.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am