Missouri lawmakers look to cap property tax increases
JEFFERSON CITY, Mo. – Later this year, Missouri voters could be asked if there should be a cap on property assessment increases.
It’s something as a property owner you can count on: property tax assessments. Within the last year, some Missourians saw increases anywhere between 30 and 150%. This bipartisan legislation would cap any future increases at 2%.
“That’s the whole point of this bill,” Rep. Jeff Coleman, R-Grain Valley, said. “Let the people decide and not just randomly give a number.”
It’s a plan to stop Missourians from being taxed out of their homes. Coleman said back in 2019, he was put on a special tax committee that held town halls across the state, asking Missourians about all taxes.
“But the one factor every place we went was the property tax and it took up the most time and people are worried about getting taxed out of their homes,” Coleman said. “Just this past year, the average was 38%, but you have people that have gotten 400%.”
Representatives approved the legislation at the end of March, which would limit how much a county assessor can increase an assessment.
“I know folks are struggling day to day and when you have a surprise tax bill, that’s just not the way that this should be done,” House Minority Leader Crystal Quade, D-Springfield, said.
Coleman is the sponsor of House Joint Resolution 78. The language in the bill says the 2% cap would only apply to primary residences. New construction and improvements would be exempt from the limitation.
Vacant Millennium Hotel listed for sale after eminent domain talks
“The 2%—that’s kind of a number I put together that keeps up with inflation, typically for social security,” Coleman said. “If the communities need more money, it doesn’t stop them from going out and asking people for an increase in their tax levy.”
Voters would have the final say if both the House and the Senate approved. Later this year, Missourians could see a question on the ballot asking if assessment increases should be limited to changes in the consumer price index or 2%, whichever is less.
“Folks deserve to know what their growth is going to look like in that realm and not be surprised at the last minute with this huge increase that they owe,” Quade said. “I appreciate the conversation in this body about managing what property tax assessments are versus the other side of the building where they’re saying let’s just completely get rid of property taxes because we absolutely need those dollars to function.”
There’s a constant conversation about cutting taxes within the Republican supermajority in the statehouse. While this legislation would not necessarily cost the state, there could be a negative impact on school districts, counties and cities.
“This puts the power back to the people,” Coleman said. “They get to decide, not the bureaucrats, so it’s now taxation with representation.”
The Missouri Assessors Association testified on the legislation during a committee hearing earlier this year, saying they are concerned this cap could create inequities.
This legislation comes at a time when there’s another resolution moving through the General Assembly to ask voters if the Jackson County Assessor should be elected instead of appointed.
“I think that makes a difference because there’s no accountability to the people if they are not elected,” Coleman said. “If they are just a bureaucrat that’s appointed by the county executive, who couldn’t care less about what’s going on?”
The legislation is now in the hands of the Senate, which has less than five weeks to bring it up for debate and vote
For the latest news, weather, sports, and streaming video, head to FOX 2.