Section 15 Defining ?Increased Costs?

• Library: Tax Law 2009

Even if the state mandates a new or increased local activity, the political subdivision must experience increased costs as a result of the activity to trigger a Hancock violation. In City of Jefferson v. Missouri Department of Natural Resources, 916 S.W.2d 794 (Mo. banc 1996), the Supreme Court of Missouri held that a new state statute requiring certain cities and counties to either join a solid waste management district or revise and submit a solid waste management plan did not violate the state-mandate provision because the affected political subdivisions did not prove they experienced increased costs in meeting the mandate. On remand, the City of Jefferson demonstrated that it would incur a substantial increase in costs because of the need to hire additional staff and related administrative costs. Based on the City of Jefferson’s evidence, the circuit court enjoined all future enforcement of the statute. On appeal, the Supreme Court of Missouri found that the increase in costs, notwithstanding which plans were used, was more than de minimis and that the City of Jefferson was not required to comply with the mandate until the state reimbursed the city for its increased costs. Id. at 796. See Mo. Mun. League v. Brunner, 740 S.W.2d 957 (Mo. banc 1987) (reversed and remanded circuit court’s dismissal of case alleging that state statute regulating the operation and closure of solid waste landfills violated...