House takes first step on property tax changes

By Emma Farrel and Samantha Jackson,

Missouri News Network

House lawmakers took the first step Wednesday toward making changes to the state’s property tax system.

The Missouri House of Representatives voted to move forward House Bill 2780, a wide-ranging bill built around a restructuring method known as “siloing” that supporters say would change how tax limits are calculated.

Rep. Tim Taylor, R-Bunceton, sponsor of the 87-page measure, who chairs the Special Interim Committee on Property Tax Reform, said the proposed bill reflects months of hearings held across Missouri to gather concerns from residents and local officials about rising property tax burdens and assessment practices.

Taylor said one of the most important aspects of the bill is siloing the individual tax subclasses, so increases in assessed value in one subclass are not diluted by stagnant values in another. This would allow personal property to initiate Hancock Provisions that limit how much taxes can increase.

“Our tax system is a mess in many ways, and it didn’t become a mess overnight,” Taylor said. “It became a mess over a long period of time. It’s important for us to not try and fix it overnight because that’s impossible.”

HB 2780 proposes multiple changes to property tax and ballot practices including limiting voting on tax measures to November instead of April, listing ballot measures alphabetically or numerically, and forbidding local jurisdictions from describing any proposed tax on property as not increasing taxes.

The House voted 93-46 to adopt Amendment 3, one of the most debated changes to the bill. The amendment moves certain property tax related ballot questions from low-turnout April elections to November ballots, when voter participation is typically higher.

Lawmakers also adopted an amendment that exempts townships from certain voting requirements under the proposal.

Rep. Kathy Steinhoff, D-Columbia, who is a member of the special committee on property tax reform, spoke in favor of Amendment 3 but ultimately did not vote in support of the full bill.

“I don’t think the people in our chamber understand the impact on our local communities, and I am very frustrated that we didn’t have a chance to have that discussion among representatives of every area of this state and something that has such a strong impact on our local communities,” Steinhoff said.

While some members questioned why the bill was coming up so early in the session, Taylor repeatedly noted that he expects changes as it goes through the Senate and that it will return for more votes in the House later this session.

Approval of the bill’s amendments Wednesday leaves one more vote in the House before the legislation moves to the Senate.