Senate hears bills to modify property tax system

By Emma Farrel and Anika Austvold, Missouri News Network
JEFFERSON CITY — The Senate Select Committee on Property Taxes heard several proposals Wednesday aimed at overhauling Missouri’s current property tax system.
Most of the discussion centered on SB 919, a bill focused on capping property tax assessment increases and limiting growth of homeowners’ taxes.
The bill is sponsored by Sen. Joe Nicola, R-Grain Valley. It would cap assessment increases at 15% and implement the limit through a tax credit. The bill specifies that the cap does not include new additions or expansions to property, and voter approved levies would not be counted in the cap.
“We have to do everything we can to preserve personal property rights,” Nicola said.
Under the bill, increases in personal property taxes, for example on cars or tractors, would be prohibited on items purchased in or before 2024. New vehicles would be taxed at their market value when purchased after the date and would not be taxed higher in future years.
Bill supporters argued the measure is necessary to prevent those who own real estate from being priced out of their homes amid rising assessments.
Discussion at the hearing revolved around Jackson County and how it faced significant backlash in 2023 after steep assessment increases led to widespread appeals and public outcry over property tax bills. Jackson County Legislator Sean Smith testified in favor of the bill.
“We still have ongoing litigation in Jackson County, we still have homeowners who were overbilled to the tune of about a quarter of a billion dollars unlawfully,” Smith said. “And what I see in this bill is tremendous, actual individual protections that are prescriptive.”
Jackson County resident Diana Knittel Pace also testified in favor of the bill. Pace owns 85 acres of agricultural property in Jackson County. She said the value of her property increased from $58,000 to $510,000 within the span of a year, despite no change in use and no new construction.
Pace said she rejected the assessment, but her reluctance raised the value to $700,000 within the span of just five days.
“I’m just a small entity. I’m a small farm, but I also support a small agricultural community in Jackson County. There’s hay farmers, independent feed stores, veterinarians,” she said. “So to tax me out of my land will not just affect me.”
Opponents to the bill include county assessors and school officials. They said capping assessment increases could create unintended
consequences. Howell County Assessor Daniel Franks opposes the bill. He argued assessment classifications already determine tax rates.
“Capping the assessment increases is not a viable way to manage our problem,” Franks said. He suggested revisiting the Hancock Amendment, a voter-approved limit on state tax increases.
“It needs to be fixed, it needs to go back to the original tenants of it because that is the protection for the taxpayers,” Franks said.
This bill is similar to HB 2780, sponsored by Rep. Tim Taylor, R-Bunceton. HB 2780 was debated and amended on the House floor last week. Taylor on Tuesday asked that the bill be sent back to a special committee to address clarifications requested by various members.
The committee also heard testimony on other property tax legislation. SB 1301, sponsored by Sen. Rick Brattin, R-Harrisonville, would cap assessments at 100%. SJR 102, sponsored by Sen. Jill Carter, R-Granby, proposes constitutional changes to taxation. SJR 111, sponsored by Sen. Brad Hudson, R-Cape Fair, reduces property tax levies when the total assessed value increases more than inflation.