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As property values soar and taxpayer discontent intensifies, Missouri lawmakers are preparing to revisit the state’s property tax system this fall—with the specter of constitutional scrutiny looming over recent legislative proposals.
Earlier this month, Governor Mike Kehoe’s $1.5 billion stadium incentive package sparked legal and political controversy by including a hard cap on property tax increases in 97 Missouri counties. The amendment—a late addition—places a ceiling of 5% or inflation (whichever is less) on tax bill increases, while 22 counties face a freeze on their base bills altogether. Notably, major urban areas like St. Louis County, Jackson County, and the City of St. Louis were exempt.
Critics immediately questioned the constitutionality of such targeted restrictions, citing Missouri’s requirement that property taxes be “uniform upon the same class or subclass of subjects.” Even House Speaker Jon Patterson, a Republican from Lee’s Summit and supporter of the legislation, acknowledged legal ambiguities.
“I’ve heard from attorneys on both sides,” Patterson said. “But one thing I don’t do is guess what is going to happen in our courts.”
To preempt a legal quagmire and address widespread frustration among property owners, Patterson announced the creation of the Special Interim Committee on Property Tax Reform. The committee is tasked with examining systemic inequities and proposing durable legislative solutions. It will conduct seven hearings statewide this summer, signaling a coordinated effort to build bipartisan consensus.
The urgency behind these efforts stems from multiple pressures: a surge in housing prices, increasingly aggressive reassessments, and political outcry from voters who feel blindsided by dramatic increases in local tax bills. Meanwhile, local governments—heavily dependent on property taxes to fund schools, emergency services, and infrastructure—warn that aggressive caps could cripple essential services.
The debate has spilled into the education sector as well. A state task force on public school funding has flagged property tax-driven inequities as a central challenge in ensuring balanced education funding across Missouri’s districts.
Key Issues at Stake:
- Equity vs. Stability: Can Missouri reform property taxes without undermining funding for local services?
- Legal Validity: Will selective caps survive a likely constitutional challenge?
- Policy Sustainability: What models ensure transparency and predictability for both taxpayers and municipalities?
With veto session already scheduled for September, there is increasing momentum for a concurrent special session focused solely on property tax reform. Republicans appear divided—some demanding aggressive tax relief, others warning of legal overreach and fiscal instability.
What Comes Next?
The interim committee, chaired by Rep. Tim Taylor (R-Bunceton) and ranking member Rep. Kathy Steinhoff (D-Columbia), is expected to release preliminary findings by late summer. Its recommendations may form the backbone of legislative proposals for a fall session—possibly reshaping the state’s approach to local taxation for decades.
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