Bill > HB514

This bill modifies existing law regarding financial reporting requirements for political subdivisions in Missouri by exempting political subdivisions with fewer than 500 inhabitants from daily fines of $500 that are typically imposed for late filing of annual financial statements. The bill maintains the requirement that these smaller political subdivisions still must file their annual financial statements in a timely manner, but removes the financial penalty for late submission. Previously, any political subdivision that failed to submit its annual financial statement on time would be subject to a substantial daily fine, which would be collected by the Department of Revenue through offsetting sales or use tax distributions. The new law specifically states that for political subdivisions with fewer than 500 inhabitants, any previously assessed but unpaid fines are now void. The bill continues to require that all political subdivisions prepare and submit annual financial reports to the state auditor, with simplified reporting requirements for smaller entities with low cash receipts, and maintains provisions that limit compensation for governing body members until the financial statement is filed. This change aims to reduce administrative burden on very small local government entities while still promoting financial transparency.

https://house.mo.gov/Bill.aspx?bill=HB514&year=2025&code=R