HCS SB 1012 -- COLLECTION OF PROPERTY TAXES

SPONSOR:  Caskey (Baker)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Tax Policy by a vote of 11 to 0.

Current law requires a person redeeming their property that has
been sold at a tax foreclosure sale to pay interest of up to 10%
on the entire purchase price of the property, even if the
purchaser bid more than the delinquent taxes.  This substitute
limits the interest paid to only the amount of the bid price that
represents the delinquent taxes.

The substitute clarifies that only current property taxes can be
protested if the taxes are in dispute and allows a county
collector to remove personal property taxes from the delinquent
or back tax book after three years.  This provision contains an
emergency clause.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that because of the stock market and
the current interest rates, businesses from outside the county
are investing in delinquency sale properties to earn the 10% rate
of return on their investment.

Testifying for the bill were Senator Caskey; and Missouri County
Collectors Association.

OPPONENTS:  There was no opposition voiced to the committee.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am