HB1238 - PROPERTY TAXES - Hoppe, Thomas
HB1238 Revises the law on property tax, enacts several local government provisions, and enacts the Community Comeback Act.
Sponsor: Hoppe, Thomas (46) Effective Date:00/00/0000
CoSponsor: Van Zandt, Tim (38) LR Number: 2629S.15T
Last Action: 06/27/2000 - Approved by Governor (G)
06/27/2000 - Delivered to Secretary of State
CCS SCS HS HB 1238
Next Hearing:Hearing not scheduled
Calendar:BILLS IN CONFERENCE
Position on Calendar:011
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
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Available Bill Summaries for HB1238 Copyright(c)
* Truly Agreed * Senate Committee Substitute * Perfected * Committee * Introduced

Available Bill Text for HB1238
* Truly Agreed * Senate Committee Substitute * Perfected * Committee * Introduced *

BILL SUMMARIES

TRULY AGREED

CCS SCS HS HB 1238 -- PROPERTY TAXES; PROPERTY USE AND
IMPROVEMENT

This bill makes several changes in laws regarding the collection
of property taxes and property ownership.  The bill:

(1)  Allows St. Louis and Kansas City, by ordinance, to
discharge a special tax bill if the city determines a public
benefit will be gained;

(2)  Expands the entities that provide housing-related
assistance to homeless persons under the Homeless Assistance
Program.  The bill also allows, upon voter approval, a $3
recorder's fee on all instruments recorded in St. Louis County
to be used for the Homeless Assistance Program;

(3)  Allows Community Improvement Districts in Kansas City to
impose a sales tax, upon voter approval, for economic
development purposes.  The definition of qualified voters in a
Community Improvement District is clarified;

(4)  Changes requirements for the recapturing of low-income
housing credits;

(5)  Expands the tax credits under the Rebuilding Communities
and Neighborhood Preservation Act to include multiple unit
condominiums;

(6)  Changes the interest penalty for prepaid property taxes to
apply only to the unpaid balance of the taxes if a payment is
delinquent;

(7)  Requires county collectors to apply payments for property
taxes against any delinquent taxes before applying the payment
to taxes due in the current year.  The requirement does not
apply to the payment of real property taxes made by financial
institutions or mortgage loan companies from escrow accounts.
Under current law, proceedings to foreclose on property with
delinquent property taxes must be initiated within 3 years.  The
bill exempts the 3-year limitation when property that has been
tax-exempt has been transferred, but the instrument of the
transfer has not been filed.  The 3-year limitation will begin
once the recording of the title has occurred;

(8)  Allows for the creation in Buchanan and Clay counties of a
land trust to administer the management, sale, and disposition
of tax-delinquent properties;

(9)  Requires a sheriff's sale for delinquent property taxes in
charter counties of the first classification to begin at 10:00
a.m.;

(10)  Prohibits persons who have 2 or more violations of
municipal building or housing codes in charter counties of the
first classification from bidding on property at a delinquent
property tax sale; and

(11)  Allows the court administrator in counties of the first
classification to record a deed on property sold at a delinquent
property tax sale.  Any challenge to the validity of an
administrator's or sheriff's deed must commence within 2 years.

In addition, the bill:

(1)  Allows the Clay County commission to appoint and set
compensation of park rangers.  Rangers must be certified by the
Department of Public Safety;

(2)  Allows Clay County to establish, own, and operate marinas
within the county.  The proceeds from operating the marinas are
to be paid into the county treasurer's park fund and expended
only for park purposes;

(3)  Extends authority to develop geographic information systems
to Springfield and all first class non-charter counties.  Under
current law, only Kansas City and St. Louis have the ability to
develop geographical information systems and the ability to
charge for the use of the systems.  Geographic information
systems link maps with other data about an area;

(4)  Changes annexation procedures for municipal annexation in
St. Louis County and in counties which border a county of the
first classification with a population in excess of 650,000;

(5)  Authorizes Kansas City to enact ordinances to protect
public and private property from illegal dumping and littering,
with a fine of up to $1,000 or up to 12 months of imprisonment,
or both, for each offense;

(6)  Requires, beginning January 1, 2001, any landlord who
leases real property located in Kansas City to register with the
governing body of the city.  The city must use the registration
list to ensure greater efficiency in compliance with local
public safety and code regulations.  These provisions expire on
January 1, 2006;

(7)  Makes the alternative tax levy in Kansas City independent
of the tax levy authorized by Section 92.030, RSMo;

(8)  Requires the number of Planned Industrial Expansion
Authority commissioners in St. Louis to be reduced from 15 to 5
through the process of attrition.  The city may also adopt a
consolidation plan to combine the Planned Industrial Expansion
Authority with the Land Reutilization Authority;

(9)  Allows municipal housing authorities to appoint a sixth
commissioner.  The sixth commissioner must receive direct
assistance from the housing authority, pursuant to federal
requirements.  The requirements do not apply to the cities of
St. Louis and Kansas City or to any housing authority exempted
from the federal requirement;

(10)  Requires the county commission in counties which have a
countywide wastewater treatment authority to appoint 5
trustees.  The trustees are responsible for control and
operation of the countywide wastewater treatment authority.
Trustees must be reimbursed for all expenses in an amount not to
exceed $25 per month;

(11)  Allows solid waste disposal areas or solid waste
processing facilities in Kansas City to accept yard waste
commingled with solid waste resulting from an illegal dump
cleanup activity or a program conducted by the city government;

(12)  Requires the Department of Natural Resources to verify
compliance within 90 days after completion of an approved
corrective action involving hazardous waste.  The department
must also issue a letter certifying compliance within 30 days
after verification;

(13)  Allows regional research consortia within a city which
lies partially or wholly within an area designated as a
distressed community to apply for health research grants,
including research into the prevention and cessation of smoking;
and

(14)  Allows the governing body of St. Charles County, upon
voter approval, to levy a sales tax not to exceed one-quarter of
one cent for the purpose of providing counseling, family
support, and temporary residential services to persons 18 years
of age or less.  Revenues from the tax must be deposited in the
Community Children's Services Fund.

COMMUNITY COMEBACK ACT (St. Louis County)

The bill also establishes the Community Comeback Act.  In its
main provisions, the act:

(1)  Authorizes the establishment of a Community Comeback Trust
for St. Louis County.  The trust's primary duties include the
prevention of neighborhood decline, demolition of abandoned
buildings, cleaning of polluted sites, and the promotion of
neighborhood reinvestment;

(2)  Provides that the county executive is to appoint the 7
members of the community trust board from a list of nominees
supplied by any member of the St. Louis County Council and the
chief elected officer of any municipality wholly within St.
Louis County.  The criteria for and terms of board membership
are outlined;

(3)  Gives exclusive control of the expenditure of moneys
collected to the credit of the trust, subject to annual
appropriation by the county council, to the trust board and
limits the administrative costs of the trust to no more than 5%
of the trust's annual budget;

(4)  Requires the county government to provide trust staff;

(5)  Authorizes the trust to issue and refund bonds, notes, or
other obligations for any proposal and to receive and liquidate
property; the trust is not, however, authorized to use the power
of eminent domain.  Bonds issued by the trust are exempt from
state income taxes;

(6)  Requires the trust board to notify all municipalities
within St. Louis County and the county council of the
requirement to conduct a planning process and adopt a community
comeback plan;

(7)  Requires the board to hold public hearings and to solicit
input from the county and municipalities regarding the
development of the community comeback plan.  The board and the
county council are to annually revise and adopt a plan;

(8)  Requires each plan to include a housing stock and market
analysis of the impediments to attracting home buyers.  In
addition, each plan is to address the factors related to the
occurrence of assessed values below the county average, median
household incomes below the county median, unemployment rates
above the county average, building vacancies, and lack of home
value growth;

(9)  Requires each plan to outline the specific strategies to
address the specific problems encountered in various regions and
neighborhoods in the county;

(10)  Requires the board to produce an annual report outlining
what has been accomplished in relation to the goals outlined in
the community comeback plan;

(11)  Requires the board to commission an annual financial audit
and an independent management audit every 5 years;

(12)  Requires the board to establish an 11-member advisory
committee, with members appointed by the county executive.  The
qualifications and length of terms of committee members are
outlined.  The advisory committee is charged with advising the
board, board staff, or petitioners who include the governing
body of any municipality or St. Louis County, any land clearance
for redevelopment authority in St. Louis County, or any not-for-
profit organization;

(13)  Authorizes the board to begin accepting petitions for
funding from the trust one month after the community comeback
plan is adopted.  The criteria which must be addressed in a
petition are outlined and include addressing how the
reinvestment needs of a neighborhood will be met by reducing or
removing impediments to home buyers; providing physical
infrastructure to promote job growth; or reducing or removing
threats to public health, safety, morals, or welfare;

(14)  Authorizes the board to award funding to a petitioner if
the petitioner's proposal involves an eligible project with
eligible expenses and is well-planned, realistic, creative,
resourceful, cost-effective, and benefits the local community;

(15)  Requires the board to establish a Select Neighborhood
Action Program (SNAP), which provides neighborhood improvement
grants requiring a 10% cash or in-kind match from applicants.
SNAP grants may only be made for projects capable of being
completed within 12 months, which do not duplicate existing
programs, do not require ongoing funding or services, and do not
conflict with the community comeback plan;

(16)  Outlines the categories for eligible SNAP grants,
including neighborhood beautification projects, neighborhood
organization or capacity projects, neighborhood-school
partnership projects, capital purchase projects which include
the acquisition of equipment or property, and neighborhood local
infrastructure improvements;

(17)  Allocates a minimum of 5% of trust funds, not to exceed
$500,000, for SNAP grants;

(18)  Authorizes one-half of the county use tax (if imposition
of the use tax is approved by voters as required in current law)
to be used for funding the Community Comeback Trust;

(19)  Changes the ballot language for submitting the use tax for
voter approval so that a description of the purposes for which
the use tax will be used is included on the ballot;

(20)  Authorizes the use tax to be described as the equivalent
of a sales tax on purchases made from out-of-state sellers by
in-state buyers and on certain intrabusiness taxable
transactions; and

(21)  Adds St. Louis County to the definition of "city" for the
purpose of qualifying for Chapter 353 urban redevelopment
assistance.  The county's authority under Chapter 353 is
restricted to the unincorporated areas of the county.

The Community Comeback Act has an emergency clause.


PERFECTED

HS HB 1238 -- DELINQUENT PROPERTY TAXES (Hoppe)

This substitute makes several changes regarding the collection
of delinquent property taxes.  The substitute:

(1)  Allows St. Louis and Kansas City, by ordinance, to
discharge a special tax bill if the city determines a public
benefit will be gained;

(2)  Changes the interest penalty for prepaid property taxes to
only apply to the unpaid balance of the taxes if a payment is
delinquent;

(3)  Allows for the creation in Buchanan and Clay counties of a
land trust to administer the management, sale, and disposition
of tax-delinquent properties;

(4)  Requires a sheriff's sale for delinquent property taxes in
charter counties of the first classification to begin at 10:00
a.m.;

(5)  Restricts persons who have violated municipal building or
housing codes in charter counties of the first classification
from bidding on property at a delinquent property tax sale; and

(6)  Allows the court administrator in counties of the first
classification to record a deed on property sold at a delinquent
property tax sale.  Any challenge to the validity of an
administrator's or sheriff's deed must commence within 2 years.

The substitute also requires the number of Planned Industrial
Expansion Authority commissioners in St. Louis to be reduced
from 15 to 5 through attrition.  The city may also adopt a
consolidation plan to combine the Planned Industrial Expansion
Authority with the Land Reutilization Authority.

FISCAL NOTE:  No impact on state funds.


COMMITTEE

HB 1238 -- KANSAS CITY DELINQUENT PROPERTY TAXES

CO-SPONSORS:  Hoppe, Van Zandt, Campbell, McLuckie

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government and Related Matters by a vote of 18 to 0 with 1
present.

This bill creates the Land Trust of Kansas City to administer
the management, sale, and other disposition of tax-delinquent
lands in the city that are also within Jackson County.  The city
trust has rights superior to those of the county land trust.

Membership, responsibilities, compensation, auditing, and
staffing of the city trust are similar to existing requirements
for county land trusts.  The mayor, the city council, and the
city school district board each appoint one of the 3 city trust
members.  Vacancies are filled by the original appointing
authority; if that authority fails to do so within 30 days, the
vacancy is filled by the mayor with the consent of the city
council.  Members must have been city residents for at least 5
years, serve 4-year staggered terms, and are paid with city
funds.  Required surety bonds are advanced from city funds and
deposited with the county clerk.  The city trust's records are
open to the taxing authorities of the city and the county, and
the city trust may use the services of any real estate broker
licensed in the county.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that most of the land parcels held
in the Jackson County Land Trust are in Kansas City.  The city
has little influence over the trust.  The city is responsible
for the upkeep of the parcels and should have authority over
them.  This bill would allow for quicker sales of the property.
Property would return to private ownership and be put back on
the tax rolls.

Testifying for the bill were Representative Hoppe; Neighborhood
and Community Services of Kansas City; Jackson County; and Clay
County.

OPPONENTS:  There was no opposition voiced to the committee.

Steve Bauer, Legislative Analyst


INTRODUCED

HB 1238 -- Kansas City Delinquent Property Taxes

Co-Sponsors:  Hoppe, Van Zandt, Campbell, McLuckie

This bill creates the Land Trust of Kansas City to administer
the management, sale, and other disposition of tax-delinquent
lands in the city that are also within Jackson County.  The city
trust has rights superior to those of the county land trust.

Membership, responsibilities, compensation, auditing, and
staffing of the city trust are similar to existing requirements
for county land trusts.  The mayor, the city council, and the
city school district board each appoint one of the 3 city trust
members.  Vacancies are filled by the original appointing
authority; if that authority fails to do so within 30 days, the
vacancy is filled by the mayor with the consent of the city
council.  Members must have been city residents for at least 5
years, serve 4-year staggered terms, and are paid with city
funds.  Required surety bonds are advanced from city funds and
deposited with the county clerk.  The city trust's records are
open to the taxing authorities of the city and the county, and
the city trust may use the services of any real estate broker
licensed in the county.


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Last Updated October 5, 2000 at 11:32 am