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-SECOND REGULAR SESSION
-HOUSE BILL NO. 2709
-103RD GENERAL ASSEMBL Y
-INTRODUCED BY REPRESENT A TIVE REEDY .
-3917H.01I JOSEPH ENGLER, Chief Clerk
-AN ACT
-T o repeal sections 137.073, 137.079, 137.1 15, and 164.121, RSMo, and to enact in lieu
-thereof five new sections relating to taxation of property .
-Be it enacted by the General Assembly of the state of Missouri, as follows:
-Section A. Sections 137.073, 137.079, 137.1 15, and 164.121, RSMo, are repealed and
-2 five new sections enacted in lieu thereof, to be known as sections 137.067, 137.073, 137.079,
-3 137.1 15, and 164.121, to read as follows:
-137.067. Notwithstanding any other pr ovision of law to the contrary , any ballot
-2 measur e seeking appr oval to add, change, or modify a tax on rea l pr operty shall expr ess
-3 the effect of the pr oposed change within the ballot language in terms of the change in
-4 r eal dollars owed per one hundred thousand dollars of a pr operty's market valuation.
-137.073. 1. As used in this section, the following terms mean:
-2 (1) "General reassessment", changes in value, entered in the assessor's books, of a
-3 substantial portion of the parcels of real property within a county resulting wholly or partly
-4 from reappraisal of value or other actions of the assessor or county equalization body or
-5 ordered by the state tax commission or any court;
-6 (2) "T ax rate", "rate", or "rate of levy", singular or plural, includes the tax rate for
-7 each purpose of taxation of property a taxing authority is authorized to levy without a vote
-8 and any tax rate authorized by election, including bond interest and sinking fund;
-9 (3) "T ax rate ceiling", a tax rate as revised by the taxing authority to comply with the
-10 provisions of this section or when a court has determined the tax rate; except that, other
-11 provisions of law to the contrary notwithstanding, a school district may levy the operating
-12 levy for school purposes required for the current year pursuant to subsection 2 of section
-EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
-intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
-13 163.021, less all adjustments required pursuant to Article X, Section 22 of the Missouri
-14 Constitution, if such tax rate does not exceed the highest tax rate in ef fect subsequent to the
-15 1980 tax year . This is the maximum tax rate that may be levied, unless a higher tax rate
-16 ceiling is approved by voters of the political subdivision as provided in this section;
-17 (4) "T ax revenue", when referring to the previous year , means the actual receipts from
-18 ad valorem levies on all classes of property , including state-assessed property , in the
-19 immediately preceding fiscal year of the political subdivision, plus an allowance for taxes
-20 billed but not collected in the fiscal year and plus an additional allowance for the revenue
-21 which would have been collected from property which was annexed by such political
-22 subdivision but which was not previously used in determining tax revenue pursuant to this
-23 section. The term "tax revenue" shall not include any receipts from ad valorem levies on any
-24 property of a railroad corporation or a public utility , as these terms are defined in section
-25 386.020, which were assessed by the assessor of a county or city in the previous year but are
-26 assessed by the state tax commission in the current year . All school districts and those
-27 counties levying sales taxes pursuant to chapter 67 shall include in the calculation of tax
-28 revenue an amount equivalent to that by which they reduced property tax levies as a result of
-29 sales tax pursuant to section 67.505 and section 164.013 [ or as excess home dock city or
-30 county fees as provided in subsection 4 of section 313.820 ] in the immediately preceding
-31 fiscal year but not including any amount calculated to adjust for prior years. For purposes of
-32 political subdivisions which were authorized to levy a tax in the prior year but which did not
-33 levy such tax or levied a reduced rate, the term "tax revenue", as used in relation to the
-34 revision of tax levies mandated by law , shall mean the revenues equal to the amount that
-35 would have been available if the voluntary rate reduction had not been made.
-36 2. Whenever changes in assessed valuation are entered in the assessor's books for any
-37 personal property , in the aggregate, or for any subclass of real property as such subclasses are
-38 established in Section 4(b) of Article X of the Missouri Constitution and defined in section
-39 137.016, the county clerk in all counties and the assessor of St. Louis City shall notify each
-40 political subdivision wholly or partially within the county or St. Louis City of the change in
-41 valuation of each subclass of real property , individually , and personal property , in the
-42 aggregate, exclusive of new construction and improvements. All political subdivisions shall
-43 immediately revise the applicable rates of levy for each purpose for each subclass of real
-44 property , individually , and personal property , in the aggregate, for which taxes are levied to
-45 the extent necessary to produce from all taxable property , exclusive of new construction and
-46 improvements, substantially the same amount of tax revenue as was produced in the previous
-47 year for each subclass of real property , individually , and personal property , in the aggregate,
-48 except that the rate shall not exceed the greater of the most recent voter- approved rate or the
-49 most recent voter- approved rate as adjusted under subdivision (2) of subsection 5 of this
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-50 section. Any political subdivision that has received approval from voters for a tax increase
-51 after August 27, 2008, may levy a rate to collect substantially the same amount of tax revenue
-52 as the amount of revenue that would have been derived by applying the voter- approved
-53 increased tax rate ceiling to the total assessed valuation of the political subdivision as most
-54 recently certified by the city or county clerk on or before the date of the election in which
-55 such increase is approved, increased by the percentage increase in the consumer price index,
-56 as provided by law , except that the [ rate ] rates of levy for each subclass of real pr operty ,
-57 individually , and personal pro perty , in the aggr egate, shall not exceed the greater of the
-58 most recent voter -approved rate or the most recent voter- approved rate as adjusted under
-59 subdivision (2) of subsection 5 of this section. Such tax revenue shall not include any receipts
-60 from ad valorem levies on any real property which was assessed by the assessor of a county
-61 or city in such previous year but is assessed by the assessor of a county or city in the current
-62 year in a dif ferent subclass of real property . Where the taxing authority is a school district for
-63 the purposes of revising the applicable rates of levy for each subclass of real property , the tax
-64 revenues from state-assessed railroad and utility property shall be apportioned and attributed
-65 to each subclass of real property based on the percentage of the total assessed valuation of the
-66 county that each subclass of real property represents in the current [ taxable ] tax year . As
-67 provided in Section 22 of Article X of the constitution, a political subdivision may also revise
-68 each levy to allow for inflationary assessment growth occurring within the political
-69 subdivision. The inflationary growth factor for any such subclass of real property or personal
-70 property shall be limited to the actual assessment growth in such subclass or class, exclusive
-71 of new construction and improvements, and exclusive of the assessed value on any real
-72 property which was assessed by the assessor of a county or city in the current year in a
-73 dif ferent subclass of real property , but not to exceed the consumer price index or five percent,
-74 whichever is lower . [ Should the tax revenue of a political subdivision from the various tax
-75 rates determined in this subsection be dif ferent than the tax revenue that would have been
-76 determined from a single tax rate as calculated pursuant to the method of calculation in this
-77 subsection prior to January 1, 2003, then the political subdivision shall revise the tax rates of
-78 those subclasses of real property , individually , and/or personal property , in the aggregate, in
-79 which there is a tax rate reduction, pursuant to the provisions of this subsection. Such
-80 revision shall yield an amount equal to such dif ference and shall be apportioned among such
-81 subclasses of real property , individually , and/or personal property , in the aggregate, based on
-82 the relative assessed valuation of the class or subclasses of property experiencing a tax rate
-83 reduction. Such revision in the tax rates of each class or subclass shall be made by computing
-84 the percentage of current year adjusted assessed valuation of each class or subclass with a tax
-85 rate reduction to the total current year adjusted assessed valuation of the class or subclasses
-86 with a tax rate reduction, multiplying the resulting percentages by the revenue dif ference
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-87 between the single rate calculation and the calculations pursuant to this subsection and
-88 dividing by the respective adjusted current year assessed valuation of each class or subclass to
-89 determine the adjustment to the rate to be levied upon each class or subclass of property . The
-90 adjustment computed herein shall be multiplied by one hundred, rounded to four decimals in
-91 the manner provided in this subsection, and added to the initial rate computed for each class
-92 or subclass of property . For school districts that levy separate tax rates on each subclass of
-93 real property and personal property in the aggregate, if voters approved a ballot before
-94 January 1, 201 1, that presented separate stated tax rates to be applied to the dif ferent
-95 subclasses of real property and personal property in the aggregate, or increases the separate
-96 rates that may be levied on the dif ferent subclasses of real property and personal property in
-97 the aggregate by dif ferent amounts, the tax rate that shall be used for the single tax rate
-98 calculation shall be a blended rate, calculated in the manner provided under subdivision (1) of
-99 subsection 6 of this section. Notwithstanding any provision of this subsection to the contrary ,
-100 no revision to the rate of levy for personal property shall cause such levy to increase over the
-101 levy for personal property from the prior year . ]
-102 3. (1) Where the taxing authority is a school district, it shall be required to revise the
-103 rates of levy to the extent necessary to produce from all taxable property , including state-
-104 assessed railroad and utility property , which shall be separately estimated in addition to other
-105 data required in complying with section 164.01 1, substantially the amount of tax revenue
-106 permitted in this section. In the year following tax rate reduction, the tax rate ceiling may be
-107 adjusted to of fset such district's reduction in the apportionment of state school moneys due to
-108 its reduced tax rate. However , in the event any school district, in calculating a tax rate ceiling
-109 pursuant to this section, requiring the estimating of ef fects of state-assessed railroad and
-110 utility valuation or loss of state aid, discovers that the estimates used result in receipt of
-111 excess revenues, which would have required a lower rate if the actual information had been
-112 known, the school district shall reduce the tax rate ceiling in the following year to compensate
-113 for the excess receipts, and the recalculated rate shall become the tax rate ceiling for purposes
-114 of this section.
-115 (2) For any political subdivision which experiences a reduction in the amount of
-116 assessed valuation relating to a prior year , due to decisions of the state tax commission or a
-117 court pursuant to sections 138.430 to 138.433, or due to clerical errors or corrections in the
-118 calculation or recordation of any assessed valuation:
-119 (a) Such political subdivision may revise the tax rate ceiling for each purpose it levies
-120 taxes to compensate for the reduction in assessed value occurring after the political
-121 subdivision calculated the tax rate ceiling for the particular subclass of real property or for
-122 personal property , in the aggregate, in a prior year . Such revision by the political subdivision
-123 shall be made at the time of the next calculation of the tax rate for the particular subclass of
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-124 real property or for personal property , in the aggregate, after the reduction in assessed
-125 valuation has been determined and shall be calculated in a manner that results in the revised
-126 tax rate ceiling being the same as it would have been had the corrected or finalized assessment
-127 been available at the time of the prior calculation;
-128 (b) In addition, for up to three years following the determination of the reduction in
-129 assessed valuation as a result of circumstances defined in this subdivision, such political
-130 subdivision may levy a tax rate for each purpose it levies taxes above the revised tax rate
-131 ceiling provided in paragraph (a) of this subdivision to recoup any revenues it was entitled to
-132 receive had the corrected or finalized assessment been available at the time of the prior
-133 calculation.
-134 4. (1) In order to implement the provisions of this section and Section 22 of Article X
-135 of the Constitution of Missouri, the term improvements shall apply to [ both ] real [ and
-136 personal ] property . In order to determine the value of new construction and improvements,
-137 each county assessor shall maintain a record of real property valuations in such a manner as to
-138 identify each year the increase in valuation for each political subdivision in the county as a
-139 result of new construction and improvements. The value of new construction and
-140 improvements shall include the additional assessed value of all improvements or additions to
-141 real property which were begun after and were not part of the prior year's assessment, except
-142 that the additional assessed value of all improvements or additions to real property which had
-143 been totally or partially exempt from ad valorem taxes pursuant to sections 99.800 to 99.865,
-144 sections 135.200 to 135.255, and section 353.1 10 shall be included in the value of new
-145 construction and improvements when the property becomes totally or partially subject to
-146 assessment and payment of all ad valorem taxes. [ The aggregate increase in valuation of
-147 personal property for the current year over that of the previous year is the equivalent of the
-148 new construction and improvements factor for personal property . Notwithstanding any opt-
-149 out implemented pursuant to subsection 14 of section 137.1 15 , ] The assessor shall certify the
-150 amount of new construction and improvements and the amount of assessed value on any real
-151 property which was assessed by the assessor of a county or city in such previous year but is
-152 assessed by the assessor of a county or city in the current year in a dif ferent subclass of real
-153 property separately for each of the three subclasses of real property for each political
-154 subdivision to the county clerk in order that political subdivisions shall have this information
-155 for the purpose of calculating tax rates pursuant to this section and Section 22, Article X,
-156 Constitution of Missouri. In addition, the state tax commission shall certify each year to each
-157 county clerk the increase in the general price level as measured by the Consumer Price Index
-158 for All Urban Consumers for the United States, or its successor publications, as defined and
-159 of ficially reported by the United States Department of Labor , or its successor agency . The
-160 state tax commission shall certify the increase in such index on the latest twelve-month basis
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-161 available on February first of each year over the immediately preceding prior twelve-month
-162 period in order that political subdivisions shall have this information available in setting their
-163 tax rates according to law and Section 22 of Article X of the Constitution of Missouri. For
-164 purposes of implementing the provisions of this section and Section 22 of Article X of the
-165 Missouri Constitution, the term "property" means all taxable property , including state-
-166 assessed property .
-167 (2) Each political subdivision required to revise rates of levy pursuant to this section
-168 or Section 22 of Article X of the Constitution of Missouri shall calculate each tax rate it is
-169 authorized to levy and, in establishing each tax rate, shall consider each provision for tax rate
-170 revision provided in this section and Section 22 of Article X of the Constitution of Missouri,
-171 separately and without regard to annual tax rate reductions provided in section 67.505 and
-172 section 164.013. Each political subdivision shall set each tax rate it is authorized to levy
-173 using the calculation that produces the lowest tax rate ceiling. It is further the intent of the
-174 general assembly , pursuant to the authority of Section 10(c) of Article X of the Constitution
-175 of Missouri, that the provisions of such section be applicable to tax rate revisions mandated
-176 pursuant to Section 22 of Article X of the Constitution of Missouri as to reestablishing tax
-177 rates as revised in subsequent years, enforcement provisions, and other provisions not in
-178 conflict with Section 22 of Article X of the Constitution of Missouri. Annual tax rate
-179 reductions provided in section 67.505 and section 164.013 shall be applied to the tax rate as
-180 established pursuant to this section and Section 22 of Article X of the Constitution of
-181 Missouri, unless otherwise provided by law .
-182 5. (1) In all political subdivisions, the tax rate ceiling established pursuant to this
-183 section shall not be increased unless approved by a vote of the people. Approval of the higher
-184 tax rate shall be by at least a majority of votes cast. When a proposed higher tax rate requires
-185 approval by more than a simple majority pursuant to any provision of law or the constitution,
-186 the tax rate increase must receive approval by at least the majority required.
-1 8 7 Notwithstanding any other prov ision of law to the contrary , all tax levy incr eases
-188 applied to any real and personal pro perty shall be applied to each subclass of pr operty
-189 equally .
-190 (2) When voters approve an increase in the tax rate, the amount of the increase shall
-191 be added to the tax rate ceiling as calculated pursuant to this section to the extent the total rate
-192 does not exceed any maximum rate prescribed by law . If a ballot question presents a stated
-193 tax rate for approval rather than describing the amount of increase in the question, the stated
-194 tax rate approved shall be adjusted as provided in this section and, so adjusted, shall be the
-195 current tax rate ceiling. The increased tax rate ceiling as approved shall be adjusted such that
-196 when applied to the current total assessed valuation of the political subdivision, excluding
-197 new construction and improvements since the date of the election approving such increase,
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-198 the revenue derived from the adjusted tax rate ceiling is equal to the sum of: the amount of
-199 revenue which would have been derived by applying the voter -approved increased tax rate
-200 ceiling to total assessed valuation of the political subdivision, as most recently certified by the
-201 city or county clerk on or before the date of the election in which such increase is approved,
-202 increased by the percentage increase in the consumer price index, as provided by law . Such
-203 adjusted tax rate ceiling may be applied to the total assessed valuation of the political
-204 subdivision at the setting of the next tax rate. If a ballot question presents a phased-in tax rate
-205 increase, upon voter approval, each tax rate increase shall be adjusted in the manner
-206 prescribed in this section to yield the sum of: the amount of revenue that would be derived by
-207 applying such voter-ap proved increased rate to the total assessed valuation, as most recently
-208 certified by the city or county clerk on or before the date of the election in which such
-209 increase was approved, increased by the percentage increase in the consumer price index, as
-210 provided by law , from the date of the election to the time of such increase and, so adjusted,
-211 shall be the current tax rate ceiling.
-212 (3) The pr ovisions of subdivision (2) of this subsection notwithstanding, if prior
-213 to the expiration of a temporary levy incr ease, voters appr ove a subsequent levy
-214 incr ease, the new tax rate ceiling shall rem ain in effect only until such time as the
-215 temporary levy expir es under the terms originally appr oved by a vote of the people, at
-216 which time the tax rate ceiling shall be decr eased by the amount of the temporary levy
-217 incr ease. If, prior to the expiration of a temporary levy incr ease, voters of a political
-218 subdivision ar e asked to appr ove an additional, permanent incr ease to the political
-219 subdivision's tax rate ceiling, voters shall be submitted ballot language that clearly
-220 indicates that if the permanent levy increa se is appr oved, the temporary levy shall be
-221 made permanent.
-222 (4) The governing body of any political subdivision may levy a tax rate lower than its
-223 tax rate ceiling [ and ] . Such r eduction to the tax rate ceiling in a nonr eassessment year
-224 shall be applied in the immediately following year of general r eassessment. The
-225 governing body of any political subdivision may , in a nonreassessment year , increase that
-226 pr eviously lowered tax rate to a level not exceeding the tax rate ceiling without voter
-227 approval in the manner provided under subdivision [ (4) ] (5) of this subsection. Such
-228 incr ease to the tax rate ceiling in a nonr eassessment year shall be applied in the
-229 immediately following year of general reas sessment. Nothing in this section shall be
-230 construed as prohibiting a political subdivision from voluntarily levying a tax rate lower than
-231 that which is required under the provisions of this section or from seeking voter approval of a
-232 reduction to such political subdivision's tax rate ceiling.
-233 [ (4) ] (5) In a year of general reassessment, a governing body whose tax rate is lower
-234 than its tax rate ceiling shall revise its tax rate pursuant to the provisions of subsection 4 of
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-235 this section as if its tax rate was at the tax rate ceiling. In a year following general
-236 reassessment, if such governing body intends to increase its tax rate, the governing body shall
-237 conduct a public hearing, and in a public meeting it shall adopt an ordinance, resolution, or
-238 policy statement justifying its action prior to setting and certifying its tax rate. The provisions
-239 of this subdivision shall not apply to any political subdivision which levies a tax rate lower
-240 than its tax rate ceiling solely due to a reduction required by law resulting from sales tax
-241 collections. The provisions of this subdivision shall not apply to any political subdivision
-242 which has received voter approval for an increase to its tax rate ceiling subsequent to setting
-243 its most recent tax rate.
-244 (6) (a) As used in this subdivision, the following terms mean:
-245 a. "Current tax rate ceiling", the tax rate ceiling in effect befor e the voters
-246 appr ove a higher tax rate;
-247 b. "Increased tax rate ceiling", the new tax rate ceiling in effect after the voters
-248 appr ove a higher tax rate.
-249 (b) Notwithstanding any other pr ovision of law to the contrary , when the
-250 r equir ed majority of voters in a political subdivision passes an incr ease in the political
-251 subdivision's tax rate, the political subdivision shall use the curr ent tax rate ceiling and
-252 the incr ease appr oved by the voters in establishing the rates of levy for the tax year
-253 immediately following the election.
-254 (c) If the assessed valuation of r eal pro perty in such political subdivision is
-255 r educed in such tax year immediately following the election, such political subdivision
-256 may raise its rates of levy so that the reve nue recei ved fr om its local rea l prope rty tax
-257 rates equals the amount the political subdivision would have rece ived fro m the incr eased
-258 rates of levy had ther e been no r eduction in the assessed valuation of real prop erty in the
-259 political subdivision.
-260 (d) Using the incr eased tax rate ceiling shall be r evenue neutral as req uire d in
-261 Article X, Section 22 of the Constitution of Missouri.
-262 6. (1) For the purposes of calculating state aid for public schools pursuant to section
-263 163.031, each taxing authority which is a school district shall determine its proposed tax rate
-264 as a blended rate of the classes or subclasses of property . Such blended rate shall be
-265 calculated by first determining the total tax revenue of the property within the jurisdiction of
-266 the taxing authority , which amount shall be equal to the sum of the products of multiplying
-267 the assessed valuation of each class and subclass of property by the corresponding tax rate for
-268 such class or subclass, then dividing the total tax revenue by the total assessed valuation of
-269 the same jurisdiction, and then multiplying the resulting quotient by a factor of one hundred.
-270 Where the taxing authority is a school district, such blended rate shall also be used by such
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-271 school district for calculating revenue from state-assessed railroad and utility property as
-272 defined in chapter 151 and for apportioning the tax rate by purpose.
-273 (2) Each taxing authority proposing to levy a tax rate in any year shall notify the clerk
-274 of the county commission in the county or counties where the tax rate applies of its tax rate
-275 ceiling and its proposed tax rate. Each taxing authority shall express its proposed tax rate in a
-276 fraction equal to the nearest one-tenth of a cent, unless its proposed tax rate is in excess of one
-277 dollar , then one/one-hundredth of a cent. If a taxing authority shall round to one/one-
-278 hundredth of a cent, it shall round up a fraction greater than or equal to five/one-thousandth of
-279 one cent to the next higher one/one-hundredth of a cent; if a taxing authority shall round to
-280 one-tenth of a cent, it shall round up a fraction greater than or equal to five/one-hundredths of
-281 a cent to the next higher one-tenth of a cent. Any taxing authority levying a property tax rate
-282 shall provide data, in such form as shall be prescribed by the state auditor by rule,
-283 substantiating such tax rate complies with Missouri law . All forms for the calculation of rates
-284 pursuant to this section shall be promulgated as a rule and shall not be incorporated by
-285 reference. The state auditor shall promulgate rules for any and all forms for the calculation of
-286 rates pursuant to this section which do not currently exist in rule form or that have been
-287 incorporated by reference. In addition, each taxing authority proposing to levy a tax rate for
-288 debt service shall provide data, in such form as shall be prescribed by the state auditor by rule,
-289 substantiating the tax rate for debt service complies with Missouri law . A tax rate proposed
-290 for annual debt service requirements will be prima facie valid if, after making the payment for
-291 which the tax was levied, bonds remain outstanding and the debt fund reserves do not exceed
-292 the following year's payments. The county clerk shall keep on file and available for public
-293 inspection all such information for a period of three years. The clerk shall, within three days
-294 of receipt, forward a copy of the notice of a taxing authority's tax rate ceiling and proposed
-295 tax rate and any substantiating data to the state auditor . The state auditor shall, within fifteen
-296 days of the date of receipt, examine such information and return to the county clerk his or her
-297 findings as to compliance of the tax rate ceiling with this section and as to compliance of any
-298 proposed tax rate for debt service with Missouri law . If the state auditor believes that a taxing
-299 authority's proposed tax rate does not comply with Missouri law , then the state auditor's
-300 findings shall include a recalculated tax rate, and the state auditor may request a taxing
-301 authority to submit documentation supporting such taxing authority's proposed tax rate. The
-302 county clerk shall immediately forward a copy of the auditor's findings to the taxing authority
-303 and shall file a copy of the findings with the information received from the taxing authority .
-304 The taxing authority shall have fifteen days from the date of receipt from the county clerk of
-305 the state auditor's findings and any request for supporting documentation to accept or reject in
-306 writing the rate change certified by the state auditor and to submit all requested information to
-307 the state auditor . A copy of the taxing authority's acceptance or rejection and any information
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-308 submitted to the state auditor shall also be mailed to the county clerk. If a taxing authority
-309 rejects a rate change certified by the state auditor and the state auditor does not receive
-310 supporting information which justifies the taxing authority's original or any subsequent
-311 proposed tax rate, then the state auditor shall refer the perceived violations of such taxing
-312 authority to the attorney general's of fice and the attorney general is authorized to obtain
-313 injunctive relief to prevent the taxing authority from levying a violative tax rate.
-314 (3) In the event that the taxing authority incorrectly completes the forms created and
-315 promulgated under subdivision (2) of this subsection, or makes a clerical error , the taxing
-316 authority may submit amended forms with an explanation for the needed changes. If such
-317 amended forms are filed under regulations prescribed by the state auditor , the state auditor
-318 shall take into consideration such amended forms for the purposes of this subsection.
-319 7. No tax rate shall be extended on the tax rolls by the county clerk unless the political
-320 subdivision has complied with the foregoing provisions of this section.
-321 8. Whenever a taxpayer has cause to believe that a taxing authority has not complied
-322 with the provisions of this section, the taxpayer may make a formal complaint with the
-323 prosecuting attorney of the county . Where the prosecuting attorney fails to bring an action
-324 within ten days of the filing of the complaint, the taxpayer may bring a civil action pursuant to
-325 this section and institute an action as representative of a class of all taxpayers within a taxing
-326 authority if the class is so numerous that joinder of all members is impracticable, if there are
-327 questions of law or fact common to the class, if the claims or defenses of the representative
-328 parties are typical of the claims or defenses of the class, and if the representative parties will
-329 fairly and adequately protect the interests of the class. In any class action maintained
-330 pursuant to this section, the court may direct to the members of the class a notice to be
-331 published at least once each week for four consecutive weeks in a newspaper of general
-332 circulation published in the county where the civil action is commenced and in other counties
-333 within the jurisdiction of a taxing authority . The notice shall advise each member that the
-334 court will exclude him or her from the class if he or she so requests by a specified date, that
-335 the judgment, whether favorable or not, will include all members who do not request
-336 exclusion, and that any member who does not request exclusion may , if he or she desires,
-337 enter an appearance. In any class action brought pursuant to this section, the court, in
-338 addition to the relief requested, shall assess against the taxing authority found to be in
-339 violation of this section the reasonable costs of bringing the action, including reasonable
-340 attorney's fees, provided no attorney's fees shall be awarded any attorney or association of
-341 attorneys who receive public funds from any source for their services. Any action brought
-342 pursuant to this section shall be set for hearing as soon as practicable after the cause is at
-343 issue.
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-344 9. If in any action, including a class action, the court issues an order requiring a taxing
-345 authority to revise the tax rates as provided in this section or enjoins a taxing authority from
-346 the collection of a tax because of its failure to revise the rate of levy as provided in this
-347 section, any taxpayer paying his or her taxes when an improper rate is applied has erroneously
-348 paid his or her taxes in part, whether or not the taxes are paid under protest as provided in
-349 section 139.031 or otherwise contested. The part of the taxes paid erroneously is the
-350 dif ference in the amount produced by the original levy and the amount produced by the
-351 revised levy . The township or county collector of taxes or the collector of taxes in any city
-352 shall refund the amount of the tax erroneously paid. The taxing authority refusing to revise
-353 the rate of levy as provided in this section shall make available to the collector all funds
-354 necessary to make refunds pursuant to this subsection. No taxpayer shall receive any interest
-355 on any money erroneously paid by him or her pursuant to this subsection. Ef fective in the
-356 1994 tax year , nothing in this section shall be construed to require a taxing authority to refund
-357 any tax erroneously paid prior to or during the third tax year preceding the current tax year .
-358 10. Any rule or portion of a rule, as that term is defined in section 536.010, that is
-359 created under the authority delegated in this section shall become ef fective only if it complies
-360 with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.
-361 This section and chapter 536 are nonseverable and if any of the powers vested with the
-362 general assembly pursuant to chapter 536 to review , to delay the ef fective date, or to
-363 disapprove and annul a rule are subsequently held unconstitutional, then the grant of
-364 rulemaking authority and any rule proposed or adopted after August 28, 2004, shall be invalid
-365 and void.
-137.079. Prior to setting its [ rate or ] rates as required by section 137.073, each taxing
-2 authority shall exclude from its total assessed valuation seventy-two percent of the total
-3 amount of assessed value of business personal property that is the subject of an appeal at the
-4 state tax commission or in a court of competent jurisdiction in this state. This exclusion shall
-5 only apply to the portion of the assessed value of business personal property that is disputed
-6 in the appeal, and shall not exclude any portion of the same property that is not disputed. [ If
-7 the taxing authority uses a multirate approach ] For the purpose of setting rates as provided
-8 in section 137.073, this exclusion shall be made from the personal property class. The state
-9 tax commission shall provide each taxing authority with the total assessed value of business
-10 personal property within the jurisdiction of such taxing authority for which an appeal is
-11 pending no later than August twentieth of each year . Whenever any appeal is resolved,
-12 whether by final adjudication or settlement, and the result of the appeal causes money to be
-13 paid to the taxing authority , the taxing authority shall not be required to make an additional
-14 adjustment to its rate or rates due to such payment once the deadline for setting its rates, as
-15 provided by this chapter , has passed in a taxable year , but shall adjust its rate or rates due to
-HB 2709 1 1
-16 such payment in the next rate setting cycle to of fset the payment in the next taxable year . For
-17 the purposes of this section, the term "business personal property" means tangible personal
-18 property which is used in a trade or business or used for production of income and which has
-19 a determinable life of longer than one year except that supplies used by a business shall also
-20 be considered business personal property , but shall not include livestock, farm machinery ,
-21 property subject to the motor vehicle registration provisions of chapter 301, property subject
-22 to the tables provided in section 137.078, the property of rural electric cooperatives under
-23 chapter 394, or property assessed by the state tax commission under chapters 151, 153, and
-24 155, section 137.022, and sections 137.1000 to 137.1030.
-137.1 15. 1. All other laws to the contrary notwithstanding, the assessor or the
-2 assessor's deputies in all counties of this state including the City of St. Louis shall annually
-3 make a list of all real and tangible personal property taxable in the assessor's city , county ,
-4 town or district. Except as otherwise provided in subsection 3 of this section and section
-5 137.078, the assessor shall annually assess all personal property at thirty-three and one-third
-6 percent of its true value in money as of January first of each calendar year . The assessor shall
-7 annually assess all real property , including any new construction and improvements to real
-8 property , and possessory interests in real property at the percent of its true value in money set
-9 in subsection 5 of this section. The true value in money of any possessory interest in real
-10 property in subclass (3), where such real property is on or lies within the ultimate airport
-11 boundary as shown by a federal airport layout plan, as defined by 14 CFR 151.5, of a
-12 commercial airport having a F AR Part 139 certification and owned by a political subdivision,
-13 shall be the otherwise applicable true value in money of any such possessory interest in real
-14 property , less the total dollar amount of costs paid by a party , other than the political
-15 subdivision, towards any new construction or improvements on such real property completed
-16 after January 1, 2008, and which are included in the above-mentioned possessory interest,
-17 regardless of the year in which such costs were incurred or whether such costs were
-18 considered in any prior year . The assessor shall annually assess all real property in the
-19 following manner: new assessed values shall be determined as of January first of each odd-
-20 numbered year and shall be entered in the assessor's books; those same assessed values shall
-21 apply in the following even-numbered year , except for new construction and property
-22 improvements which shall be valued as though they had been completed as of January first of
-23 the preceding odd-numbered year . The assessor may call at the of fice, place of doing
-24 business, or residence of each person required by this chapter to list property , and require the
-25 person to make a correct statement of all taxable tangible personal property owned by the
-26 person or under his or her care, char ge or management, taxable in the county . On or before
-27 January first of each even-numbered year , the assessor shall prepare and submit a two-year
-28 assessment maintenance plan to the county governing body and the state tax commission for
-HB 2709 12
-29 their respective approval or modification. The county governing body shall approve and
-30 forward such plan or its alternative to the plan to the state tax commission by February first.
-31 If the county governing body fails to forward the plan or its alternative to the plan to the state
-32 tax commission by February first, the assessor's plan shall be considered approved by the
-33 county governing body . If the state tax commission fails to approve a plan and if the state tax
-34 commission and the assessor and the governing body of the county involved are unable to
-35 resolve the dif ferences, in order to receive state cost-share funds outlined in section 137.750,
-36 the county or the assessor shall petition the administrative hearing commission, by May first,
-37 to decide all matters in dispute regarding the assessment maintenance plan. Upon agreement
-38 of the parties, the matter may be stayed while the parties proceed with mediation or
-39 arbitration upon terms agreed to by the parties. The final decision of the administrative
-40 hearing commission shall be subject to judicial review in the circuit court of the county
-41 involved. In the event a valuation of subclass (1) real property within any county with a
-42 charter form of government, or within a city not within a county , is made by a computer ,
-43 computer -assisted method or a computer program, the burden of proof, supported by clear ,
-44 convincing and cogent evidence to sustain such valuation, shall be on the assessor at any
-45 hearing or appeal. In any such county , unless the assessor proves otherwise, there shall be a
-46 presumption that the assessment was made by a computer , computer -assisted method or a
-47 computer program. Such evidence shall include, but shall not be limited to, the following:
-48 (1) The findings of the assessor based on an appraisal of the property by generally
-49 accepted appraisal techniques; and
-50 (2) The purchase prices from sales of at least three comparable properties and the
-51 address or location thereof. As used in this subdivision, the word "comparable" means that:
-52 (a) Such sale was closed at a date relevant to the property valuation; and
-53 (b) Such properties are not more than one mile from the site of the disputed property ,
-54 except where no similar properties exist within one mile of the disputed property , the nearest
-55 comparable property shall be used. Such property shall be within five hundred square feet in
-56 size of the disputed property , and resemble the disputed property in age, floor plan, number of
-57 rooms, and other relevant characteristics.
-58 2. Assessors in each county of this state and the City of St. Louis may send personal
-59 property assessment forms through the mail.
-60 3. The following items of personal property shall each constitute separate subclasses
-61 of tangible personal property and shall be assessed and valued for the purposes of taxation at
-62 the following percentages of their true value in money:
-63 (1) Grain and other agricultural crops in an unmanufactured condition, one-half of
-64 one percent;
-65 (2) Livestock, twelve percent;
-HB 2709 13
-66 (3) Farm machinery , twelve percent;
-67 (4) Motor vehicles which are eligible for registration as and are registered as historic
-68 motor vehicles pursuant to section 301.131 and aircraft which are at least twenty-five years
-69 old and which are used solely for noncommercial purposes and are operated less than two
-70 hundred hours per year or aircraft that are home built from a kit, five percent;
-71 (5) Poultry , twelve percent;
-72 (6) T ools and equipment used for pollution control and tools and equipment used in
-73 retooling for the purpose of introducing new product lines or used for making improvements
-74 to existing products by any company which is located in a state enterprise zone and which is
-75 identified by any standard industrial classification number cited in subdivision (7) of section
-76 135.200, twenty-five percent; and
-77 (7) Solar panels, racking systems, inverters, and related solar equipment, components,
-78 materials, and supplies installed in connection with solar photovoltaic ener gy systems, as
-79 described in subdivision (46) of subsection 2 of section 144.030, that were constructed and
-80 producing solar ener gy prior to August 9, 2022, five percent.
-81 4. The person listing the property shall enter a true and correct statement of the
-82 property , in a printed blank prepared for that purpose. The statement, after being filled out,
-83 shall be signed and either af firmed or sworn to as provided in section 137.155. The list shall
-84 then be delivered to the assessor .
-85 5. (1) All subclasses of real property , as such subclasses are established in Section 4
-86 (b) of Article X of the Missouri Constitution and defined in section 137.016, shall be assessed
-87 at the following percentages of true value:
-88 (a) For real property in subclass (1), nineteen percent;
-89 (b) For real property in subclass (2), twelve percent; and
-90 (c) For real property in subclass (3), thirty-two percent.
-91 (2) A taxpayer may apply to the county assessor , or , if not located within a county ,
-92 then the assessor of such city , for the reclassification of such taxpayer's real property if the use
-93 or purpose of such real property is changed after such property is assessed under the
-94 provisions of this chapter . If the assessor determines that such property shall be reclassified,
-95 he or she shall determine the assessment under this subsection based on the percentage of the
-96 tax year that such property was classified in each subclassification.
-97 6. Manufactured homes, as defined in section 700.010, which are actually used as
-98 dwelling units shall be assessed at the same percentage of true value as residential real
-99 property for the purpose of taxation. The percentage of assessment of true value for such
-100 manufactured homes shall be the same as for residential real property . If the county collector
-101 cannot identify or find the manufactured home when attempting to attach the manufactured
-102 home for payment of taxes owed by the manufactured home owner , the county collector may
-HB 2709 14
-103 request the county commission to have the manufactured home removed from the tax books,
-104 and such request shall be granted within thirty days after the request is made; however , the
-105 removal from the tax books does not remove the tax lien on the manufactured home if it is
-106 later identified or found. For purposes of this section, a manufactured home located in a
-107 manufactured home rental park, rental community or on real estate not owned by the
-108 manufactured home owner shall be considered personal property . For purposes of this
-109 section, a manufactured home located on real estate owned by the manufactured home owner
-110 may be considered real property .
-111 7. Each manufactured home assessed shall be considered a parcel for the purpose of
-112 reimbursement pursuant to section 137.750, unless the manufactured home is deemed to be
-113 real estate as defined in subsection 7 of section 442.015 and assessed as a realty improvement
-114 to the existing real estate parcel.
-115 8. Any amount of tax due and owing based on the assessment of a manufactured
-116 home shall be included on the personal property tax statement of the manufactured home
-117 owner unless the manufactured home is deemed to be real estate as defined in subsection 7 of
-118 section 442.015, in which case the amount of tax due and owing on the assessment of the
-119 manufactured home as a realty improvement to the existing real estate parcel shall be
-120 included on the real property tax statement of the real estate owner .
-121 9. The assessor of each county and each city not within a county shall use a nationally
-122 recognized automotive trade publication such as the National Automobile Dealers'
-12 3 Association Of ficial Used Car Guide, Kelley Blue Book, Edmunds, or other similar
-124 publication as the recommended guide of information for determining the true value of motor
-125 vehicles described in such publication. The state tax commission shall select and make
-126 available to all assessors which publication shall be used. The assessor of each county and
-127 each city not within a county shall use the trade-in value published in the current October
-128 issue of the publication selected by the state tax commission. The assessor shall not use a
-129 value that is greater than the average trade-in value in determining the true value of the motor
-130 vehicle without performing a physical inspection of the motor vehicle. For vehicles two years
-131 old or newer from a vehicle's model year , the assessor may use a value other than average
-132 without performing a physical inspection of the motor vehicle. In the absence of a listing for
-133 a particular motor vehicle in such publication, the assessor shall use such information or
-134 publications that, in the assessor's judgment, will fairly estimate the true value in money of
-135 the motor vehicle. For motor vehicles with a true value of less than fifty thousand dollars as
-136 of January 1, 2025, the assessor shall not assess such motor vehicle for an amount greater
-137 than such motor vehicle was assessed in the previous year , provided that such motor vehicle
-138 was properly assessed in the previous year .
-HB 2709 15
-139 10. Before the assessor may increase the assessed valuation of any parcel of subclass
-140 (1) real property by more than fifteen percent since the last assessment, excluding increases
-141 due to new construction or improvements, the assessor shall conduct a physical inspection of
-142 such property .
-143 1 1. If a physical inspection is required, pursuant to subsection 10 of this section, the
-144 assessor shall notify the property owner of that fact in writing and shall provide the owner
-145 clear written notice of the owner's rights relating to the physical inspection. If a physical
-146 inspection is required, the property owner may request that an interior inspection be
-147 performed during the physical inspection. The owner shall have no less than thirty days to
-148 notify the assessor of a request for an interior physical inspection.
-149 12. A physical inspection, as required by subsection 10 of this section, shall include,
-150 but not be limited to, an on-site personal observation and review of all exterior portions of the
-151 land and any buildings and improvements to which the inspector has or may reasonably and
-152 lawfully gain external access, and shall include an observation and review of the interior of
-153 any buildings or improvements on the property upon the timely request of the owner pursuant
-154 to subsection 1 1 of this section. Mere observation of the property via a drive-by inspection or
-155 the like shall not be considered suf ficient to constitute a physical inspection as required by
-156 this section.
-157 13. A county or city collector may accept credit cards as proper form of payment of
-158 outstanding property tax or license due. No county or city collector may char ge surcharge for
-159 payment by credit card which exceeds the fee or surchar ge char ged by the credit card bank,
-160 processor , or issuer for its service. A county or city collector may accept payment by
-161 electronic transfers of funds in payment of any tax or license and char ge the person making
-162 such payment a fee equal to the fee char ged the county by the bank, processor , or issuer of
-163 such electronic payment.
-164 14. [ Any county or city not within a county in this state may , by an affir mative vote of
-165 the governing body of such county , opt out of the provisions of this section and sections
-166 137.073, 138.060, and 138.100 as enacted by house bill no. 1 150 of the ninety-first general
-167 assembly , second regular session and section 137.073 as modified by house committee
-168 substitute for senate substitute for senate committee substitute for senate bill no. 960, ninety-
-169 second general assembly , second regular session, for the next year of the general
-170 reassessment, prior to January first of any year . No county or city not within a county
-171 shall exercise this opt-out provision after implementing the provisions of this section and
-172 sections 137.073, 138.060, and 138.100 as enacted by house bill no. 1 150 of the ninety-first
-173 general assembly , second regular session and section 137.073 as modified by house
-174 committee substitute for senate substitute for senate committee substitute for senate bill no.
-175 960, ninety-second general assembly , second regular session, in a year of general
-HB 2709 16
-176 reassessment. For the purposes of applying the provisions of this subsection, a political
-177 subdivision contained within two or more counties where at least one of such counties has
-178 opted out and at least one of such counties has not opted out shall calculate a single tax rate as
-179 in effect prior to the enactment of house bill no. 1 150 of the ninety-first general assembly ,
-180 second regular session. A governing body of a city not within a county or a county that has
-181 opted out under the provisions of this subsection may choose to implement the provisions of
-182 this section and sections 137.073, 138.060, and 138.100 as enacted by house bill no. 1 150 of
-183 the ninety-first general assembly , second regular session, and section 137.073 as modified by
-184 house committee substitute for senate substitute for senate committee substitute for senate bill
-185 no. 960, ninety-second general assembly , second regular session, for the next year of general
-186 reassessment, by an af firmative vote of the governing body prior to December thirty-first of
-187 any year .
-188 15. The governing body of any city of the third classification with more than twenty-
-189 six thousand three hundred but fewer than twenty-six thousand seven hundred inhabitants
-190 located in any county that has exercised its authority to opt out under subsection 14 of this
-191 section may levy separate and dif fering tax rates for real and personal property only if such
-192 city bills and collects its own property taxes or satisfies the entire cost of the billing and
-193 collection of such separate and dif fering tax rates. Such separate and dif fering rates shall not
-194 exceed such city's tax rate ceiling.
-195 16. ] Any portion of real property that is available as reserve for strip, surface, or coal
-196 mining for minerals for purposes of excavation for future use or sale to others that has not
-197 been bonded and permitted under chapter 444 shall be assessed based upon how the real
-198 property is currently being used. Any information provided to a county assessor , state tax
-199 commission, state agency , or political subdivision responsible for the administration of tax
-200 policies shall, in the performance of its duties, make available all books, records, and
-201 information requested, except such books, records, and information as are by law declared
-202 confidential in nature, including individually identifiable information regarding a specific
-203 taxpayer or taxpayer's mine property . For purposes of this subsection, "mine property" shall
-204 mean all real property that is in use or readily available as a reserve for strip, surface, or coal
-205 mining for minerals for purposes of excavation for current or future use or sale to others that
-206 has been bonded and permitted under chapter 444.
-164.121. 1. The school board of any district other than a metropolitan or urban
-2 district may borrow money and issue bonds for the payment thereof for the following
-3 purposes:
-4 (1) Purchasing schoolhouse sites and other land for school purposes;
-5 (2) Erecting schoolhouses or library buildings;
-6 (3) Furnishing schoolhouses or library buildings;
-HB 2709 17
-7 (4) Building additions to or repairing old buildings;
-8 (5) Purchasing school buses and other transportation equipment;
-9 (6) Paying of f and dischar ging assessments made by counties, cities, towns and
-10 villages or other political subdivisions or public corporations of the state against the district in
-11 connection with the erection, construction and maintenance of sewers and sewer systems,
-12 sidewalks, guttering, curbing and paving of streets and alleys adjoining and abutting real
-13 estate of the district if the general funds of the district are insufficie nt in the judgment of the
-14 board to pay and discharg e the assessment.
-15 2. The question of any loan under this section shall be decided at an election.
-16 3. Notice of the submission of the question shall include the amount of the loan
-17 r equir ed and for what purpose.
-✔
-HB 2709 18
+COMMITTEE ON LEGISLATIVE RESEARCH
+OVERSIGHT DIVISION
+
+FISCAL NOTE
+
+ L.R. No.: 3917H.02C
+ Bill No.: HCS for HB Nos. 2709 & 2671
+ Subject: Taxation and Revenue - Property; County Officials; Bonds - General Obligation
+and Revenue
+ Type: Original
+ Date: March 4, 2026
+
+Bill Summary: This proposal modifies provisions governing the taxation of property.
+
+FISCAL SUMMARY
+
+ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
+FUND AFFECTED FY 2027 FY 2028 FY 2029
+
+Total Estimated Net
+Effect on General
+Revenue $0 $0 $0
+
+ESTIMATED NET EFFECT ON OTHER STATE FUNDS
+FUND AFFECTED FY 2027 FY 2028 FY 2029
+
+Total Estimated Net
+Effect on Other
+State Funds $0 $0 $0
+Numbers within parentheses: () indicate costs or losses.
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 2 of 14
+March 4, 2026
+KLS:LR:OD
+ESTIMATED NET EFFECT ON FEDERAL FUNDS
+FUND AFFECTED FY 2027 FY 2028 FY 2029
+
+Total Estimated Net
+Effect on All
+Federal Funds $0 $0 $0
+
+ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)
+FUND AFFECTED FY 2027 FY 2028 FY 2029
+
+Total Estimated Net
+Effect on FTE 0 0 0
+
+☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
+     of the three fiscal years after implementation of the act or at full implementation of the act.
+
+☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
+     the three fiscal years after implementation of the act or at full implementation of the act.
+
+ESTIMATED NET EFFECT ON LOCAL FUNDS
+FUND AFFECTED FY 2027 FY 2028 FY 2029
+
+Local Government $0
+(Unknown) to
+Unknown
+(Unknown) to
+Unknown
+*Oversight cannot reasonably estimate the net effect on local political subdivisions with the
+information available.
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 3 of 14
+March 4, 2026
+KLS:LR:OD
+FISCAL ANALYSIS
+
+ASSUMPTION
+
+§137.067 – Tax Levies by Political Subdivisions
+
+In response to similar legislation, HB 1790 (2026), officials from the State Tax Commission,
+Office of the State Auditor, City of Kansas City, Platte County Board of Elections, St.
+Louis City Board of Elections, St. Louis County Board of Elections, and St. Louis City
+Assessor each assumed the proposal will have no fiscal impact on their respective organizations.
+
+Oversight does not anticipate a fiscal impact from this provision. However, Oversight received a
+limited number of responses from local political subdivisions related to the fiscal impact of this
+proposal. Oversight has presented this fiscal note on the best information available. Upon the
+receipt of additional responses, Oversight will review to determine if an updated fiscal note
+should be prepared and seek approval to publish a new fiscal note.
+
+§137.073 - Tax Levies by Subclass
+
+Oversight assumes this provision could result in potential redistribution of property tax revenues
+among subclasses. Oversight assumes the fiscal impact on local political subdivisions is
+dependent upon future assessed valuation growth and levy decisions. Oversight will show an
+unknown negative or unknown positive impact to local political subdivisions.
+
+Oversight notes the Blind Pension Fund (0621) is calculated as an annual tax of three cents on
+each one hundred dollars valuation of taxable property ((Total Assessed Value/100)*.03).
+Because this proposal alters only components of the rate setting calculation, it does not limit the
+assessed value portion of this equation, therefore the Blind Pension Fund will not be impacted by
+this proposal.
+
+§137.073.4.(1) – New Construction and Personal Property
+
+In response to similar legislation, HB 1766 (2026), officials from the County Employees
+Retirement Fund (CERF) assumed HB 1766 would likely have a negative fiscal impact to
+CERF.  A certain portion of the moneys that are used to fund CERF are tied to the collection of
+property taxes.  CERF notes that the amount of these revenues fluctuates from year to
+year.  CERF notes that there is insufficient information to quantify the exact impact but CERF
+assumes that the impact would be negative.  CERF would expect the changes in HB 1766 to
+potentially result in a deterioration of CERF’s funding over time.  Unless the funding is replaced
+with other sources, it likely has serious implications for CERF’s long-term sustainability.
+
+In response to similar legislation, HB 1766 (2026), officials from the St Louis City Assessor
+note the legislation affects property tax rate rollbacks by how personal property new construction
+is treated.
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 4 of 14
+March 4, 2026
+KLS:LR:OD
+
+Personal property values since 2000 have been relatively stable over time.  Since personal
+property new construction is just the comparison of the current year personal property total to the
+prior year personal property total, history would indicate that there has been limited increases or
+decreases over time.
+
+For example, in 2023 there was personal property new construction as the 2023 personal
+property values were higher than the prior year.  But then in 2025, the personal property values
+were lower than the prior year so there was no new construction.
+
+It is unlikely that there will be any fiscal effect in even numbered years because the new
+construction numbers have rarely, if ever, increased enough in even years to cause a rollback.
+Taxing jurisdictions took in $87.6M more in 2023 than in 2022, after rolling back.  If the
+legislation would have been in place, they would have taken in $83.5M more, so the amount of
+the increase in revenues would have been reduced by $3.97M.
+
+The $3.97M difference is less than 1% of the taxes collected.
+
+In response to similar legislation, HB 1766 (2026), officials from the Washington County
+Assessor noted if this happened on average for Washington county, the county would lose
+$111,384.67.  That's almost all of the county’s 1% occupancy tax income for the budget.
+
+In response to similar legislation, HB 2430 (2024), officials from the Howell County Assessor
+noted currently no software in use for assessment purposes has the ability to segregate market
+value increases of vehicles from new vehicles added to the assessment roll.
+
+In response to similar legislation, HB 2430 (2024), officials from the Lincoln County Assessor
+noted by not allowing the personal property increases as new construction - school districts in
+particular will not receive the tax increase windfalls they have received in the past - therefore
+being more fair to the taxpayers.
+
+In response to similar legislation, HB 1766 (2026), officials from the Fairfax R-III School
+District and High Point R-III School District both assumed the proposal will have a fiscal
+impact but did not provide any additional information.
+
+Officials from Boone County SB 40 (Boone County Family Resources) assume a reduction in
+funding from personal property and real property taxes would have profound consequences for
+individuals with intellectual and developmental disabilities (IDD), limiting access to the essential
+supports they depend on. County Boards— also known as Senate Bill 40 organizations— such as
+Boone County Family Resources (BCFR) play a vital role in assessing local needs and
+cultivating a strong network of high-quality services for more than 2,400 Boone County residents
+with developmental disabilities and their families.
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 5 of 14
+March 4, 2026
+KLS:LR:OD
+In Boone County alone, BCFR receives approximately $4.5 million annually from personal
+property taxes, representing 28% of the board’s operating budget. Eliminating this revenue
+source would immediately and substantially reduce the funding available for critical services,
+creating a significant negative impact on Boone Countians with developmental disabilities.
+
+In response to similar legislation, HB 1766 (2026), officials from the Jasper County SB 40
+Board assumed under HB 1766, tax rates for personal property cannot increase beyond the
+previous year’s levy, even if assessed values decline. This restriction, combined with the removal
+of personal property growth from the “new construction” factor starting in 2027, will
+significantly limit SB 40 Boards’ ability to maintain stable funding. When personal property
+values decrease, which often happens with vehicles, SB 40 Boards will experience revenue
+shortfalls without any mechanism to adjust rates upward to compensate.
+
+In response to similar legislation, HB 1766 (2026), officials from the Callaway County SB 40
+Board assumed HB 1766 modifies Missouri law relating to personal property assessments and
+levy calculations by eliminating the treatment of aggregate personal property valuation increases
+as new construction beginning in 2027 and by reinforcing limits on personal property levy
+growth. While the bill standardizes assessment practices, it restricts the ability of local taxing
+entities to realize revenue growth from personal property.
+
+Senate Bill 40 organizations, including Callaway County Special Services (CCSS), rely on local
+property tax levy revenue to assess community needs and sustain a coordinated network of
+essential, community-based services serving more than 230 individuals with intellectual and
+developmental disabilities (IDD) and their families in Callaway County.
+
+In Callaway County, personal property taxes account for approximately 27.24% of the local
+developmental disability tax levy. By limiting recognition of valuation growth for personal
+property, HB 1766 creates a long-term constraint on this revenue source, increasing fiscal
+pressure on levy-dependent SB40 services.
+
+Services supported in part by personal property tax revenue include employment supports,
+transportation, inclusive community-based programs, and essential family resources. These
+services advance statutory goals of independence, community integration, and quality of life,
+while strengthening the overall social and economic well-being of Callaway County.
+
+Before implementing changes that restrict personal property tax revenue growth, the cumulative
+impact on individuals with IDD, their families, and SB40 boards must be carefully evaluated.
+Absent a sustainable and equitable replacement funding mechanism, HB 1766 poses a long-term
+risk to the ability of Senate Bill 40 organizations to meet their statutory obligations and preserve
+critical community-based supports.
+
+In response to similar legislation, HB 1766 (2026), officials from the Pettis County SB 40
+Board assumed a reduction in funding from personal property and/or real property taxes would
+have significant consequences on critical support for individuals with intellectual and
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 6 of 14
+March 4, 2026
+KLS:LR:OD
+developmental disabilities (IDD), limiting access to critical supports for those who rely on them.
+Senate Bill 40 organizations such as Pettis County Board of Services for the Developmentally
+Disabled assess local needs and nurture a strong network of high-quality services that are
+essential to over 620 people with IDD and their families.
+
+The services supported by personal property taxes include employment opportunities, inclusive
+community programs, and vital resources for families. Beyond supporting individuals with IDD,
+these programs enrich lives and strengthen the overall fabric of the community, fostering a more
+equitable and inclusive society.
+
+The broader implications for individuals, families, and the community must be carefully
+considered before any changes to the funding mechanisms are implemented. If reductions in
+personal property and/or real property taxes are pursued, it is imperative to establish a
+sustainable and equitable mechanism to replace this funding. Doing so will ensure that Senate
+Bill 40 organizations can continue fulfilling their critical mission of supporting individuals with
+IDD and their families, while preserving the broader community benefits these services provide.
+
+In response to similar legislation, HB 1766 (2026), officials from the Rolling Hills
+Consolidated Library assumed not counting an increase in personal property value as "new
+construction" will have a fiscal impact on taxable income for the library district but it is unclear
+at this time how much that might be.  It would depend on what the items were and how much the
+value increased.
+
+In response to similar legislation, HB 1766 (2026), officials from the State Tax Commission,
+City of Kansas City, Phelps County Sheriff, and the Branson Police Department each
+assumed the proposal will have no fiscal impact on their respective organizations. Oversight
+does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in
+the fiscal note for these agencies.
+
+Oversight notes property tax revenues are generally designed to be revenue neutral from year to
+year. The tax levy is adjusted relative to the assessed value to produce roughly the same revenue
+from the prior year with an allowance for growth.
+
+Oversight notes omitting the increase in value from personal property from new construction in
+the rate setting calculation would result in a higher adjusted assessed value (the denominator)
+relative to the authorized revenues (the numerator) in the rate setting calculation. This would
+reduce the tax rate applied to total assessed values thereby reducing revenues for all tax entities.
+
+Oversight notes this proposal could reduce allowable revenue growth for local taxing entities
+over time.
+
+Oversight notes the Blind Pension Fund (0621) is calculated as an annual tax of three cents on
+each one hundred dollars valuation of taxable property ((Total Assessed Value/100)*.03).
+Because this proposal alters only components of the rate setting calculation, it does not limit the
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 7 of 14
+March 4, 2026
+KLS:LR:OD
+assessed value portion of this equation, therefore the Blind Pension Fund will not be impacted by
+this proposal.
+
+In response to similar legislation, HB 1766 (2026), officials from the Washington County
+Assessor noted if this happened on average for Washington county, the county would lose
+$111,384.67.  That's almost all of the county’s 1% occupancy tax income for the budget.
+
+In response to similar legislation, HB 2430 (2024), officials from the Howell County Assessor
+noted currently no software in use for assessment purposes has the ability to segregate market
+value increases of vehicles from new vehicles added to the assessment roll.
+
+In response to similar legislation, HB 2430 (2024), officials from the Lincoln County Assessor
+noted by not allowing the personal property increases as new construction - school districts in
+particular will not receive the tax increase windfalls they have received in the past - therefore
+being more fair to the taxpayers.
+
+§137.073.5.(3) – Temporary vs. Permanent Levy
+
+Oversight assumes this provision specifies that, if the voters in a political subdivision approve a
+temporary levy increase prior to the expiration of a previously approved temporary levy increase,
+the new tax rate ceiling will remain in effect only until the temporary levy increase expires under
+the terms originally approved by a vote of the people. At that time, the tax rate ceiling will be
+decreased by the amount of the temporary levy increase unless voters of the political subdivision
+are asked to approve an additional permanent increase and such increase is approved.
+
+Oversight does not anticipate a fiscal impact from this proposal. Therefore, Oversight will reflect
+a zero impact in the fiscal note.
+
+§137.073 - Voter-Approved Increased Tax Rate Ceiling
+
+Oversight assumes this provision clarifies the treatment of voter-approved increases to property
+tax rate ceilings. Oversight assumes this provision does not mandate a tax increase; it only
+governs the treatment of rates already approved by voters. Therefore, Oversight does not
+anticipate a fiscal impact from this proposal. Therefore, Oversight will reflect a zero impact in
+the fiscal note.
+
+§137.079 – Single Tax Rate Requirement
+
+Oversight assumes this provision modifies levy certification procedures. Oversight does not
+anticipate a fiscal impact from this proposal. Therefore, Oversight will reflect a zero impact in
+the fiscal note.
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 8 of 14
+March 4, 2026
+KLS:LR:OD
+§137.115 - Repeal of Opt-Out Provisions from HB 1150 (2002) and SB 960
+
+Oversight assumes this provision repeals several opt-out provisions including setting separate
+levies to be calculated for each subclass of real property, tax rate ceilings, blended tax rates, tax
+rate calculations, and credit card usage to pay property taxes.
+
+Oversight assumes jurisdictions that previously opted out may experience shifts in tax burden
+among property subclasses and/or changes in effective levy rates. Therefore, Oversight will show
+an unknown revenue impact to local political subdivisions beginning in FY 2027.
+
+§164.121 – School District Bond Language
+
+Oversight assumes this provision states the notice of the submission of the question of any loan
+for a ballot must include the amount of the loan required and the purpose of the loan.
+
+Oversight does not anticipate a fiscal impact from this provision. However, Oversight received a
+limited number of responses from local political subdivisions related to the fiscal impact of this
+proposal. Oversight has presented this fiscal note on the best information available. Upon the
+receipt of additional responses, Oversight will review to determine if an updated fiscal note
+should be prepared and seek approval to publish a new fiscal note.
+
+Responses regarding the proposed legislation as a whole
+
+Officials from the Office of Administration - Budget and Planning (B&P) note this provision
+will not impact:
+- TSR
+- The calculation under Article X, Section 18(e)
+- B&P
+
+Officials from the Eastern Clay Ambulance District assumed the proposal will have a fiscal
+impact but did not provide additional information.
+
+Officials from the Canton R-V School Districts assume if the state of Missouri were to
+implement HB 2709 as written, and eliminate the language that allows for a correction in tax rate
+if the district is set to see a decrease in revenue, and removes new personal property from being
+calculated as new construction, the projected impact on FY2026 tax revenue would be -
+$54,484.00 for Canton R-V School District.
+
+Officials from the Hannibal 60 School District assume if the state of Missouri were to
+implement HB 2709 as written, and eliminate the language that allows for a correction in tax rate
+if the district is set to see a decrease in revenue, and removes new personal property from being
+calculated as new construction, the projected impact on FY2026 tax revenue would be:    -
+$823,046.00
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 9 of 14
+March 4, 2026
+KLS:LR:OD
+Officials from the Pleasant Hope R-VI School District assume if the state of Missouri were to
+implement HB 2709 as written, and eliminate the language that allows for a correction in tax rate
+if the district is set to see a decrease in revenue, and removes new personal property from being
+calculated as new construction, the projected impact on FY2026 tax revenue would be:
+-$20,076.00
+
+Officials from the Raymore-Peculiar R-II School District assume analysis indicates a negative
+impact of $328,488.00 in FY 26.
+
+Officials from the Richland R-I School District assume if the state of Missouri were to
+implement HB 2709 as written, and eliminate the language that allows for a correction in tax rate
+if the district is set to see a decrease in revenue, and removes new personal property from being
+calculated as new construction, the projected impact on FY2026 tax revenue would be: -
+$97,547.00
+
+Officials from the Salem R-80 School District of the state of Missouri were to implement HB
+2709 as written, and eliminate the language that allows for a correction in tax rate if the district is
+set to see a decrease in revenue, and removes new personal property from being calculated as
+new construction, the projected impact on FY2026 tax revenue for Salem R80 would be: $668.00
+
+Officials from the Department of Social Services, State Tax Commission, Newton County
+Health Department, Kansas City Police Department, and St. Louis County Police
+Department each assume the proposal will have no fiscal impact on their respective
+organizations. Oversight does not have any information to the contrary. Therefore, Oversight
+will reflect a zero impact in the fiscal note for these agencies.
+
+In response to a previous version, officials from the County Employees’ Retirement Fund
+(CERF) assumed the following sections have no direct fiscal impact: §§137.067 and 164.121
+
+Section 137.073: There is insufficient data to quantify this section’s exact impact.  It may result
+in an unknown, possibly negative, fiscal impact.
+
+In response to a similar proposal, HB 2780 (2026), officials from Office of Administration -
+Budget and Planning (B&P) stated the provisions required all counties to levy property tax
+rates by real property subclass (residential, agriculture, commercial / utility) and personal
+property. B&P notes that currently only St. Louis County and the City of Gladstone levy
+property tax rates based on property class (real versus personal). No jurisdiction currently levies
+separate tax rates based on property subclass. This provision is not expected to impact revenues
+to the Blind Pension Trust Fund.
+
+In response to a previous version, officials from the Adair County SB 40 DD Board assumed a
+reduction in funding from personal and/or real property taxes would have a direct and significant
+impact on the essential supports provided by the Adair County SB40 Developmental Disability
+Board. SB40 funding enables the board’s local system to assess community needs and sustain a
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 10 of 14
+March 4, 2026
+KLS:LR:OD
+coordinated network of services that currently support approximately 465 individuals with
+intellectual and developmental disabilities and their families across Adair County.
+
+In response to a previous version, officials from the Callaway County SB 40 Board assumed a
+reduction in funding from personal property and/or real property taxes, or statutory limitations
+that restrict allowable levy growth, would have significant consequences for critical supports for
+individuals with intellectual and developmental disabilities (IDD). Senate Bill 40 organizations
+such as Callaway County Special Services (CCSS) are charged with assessing local need and
+sustaining a coordinated network of services supporting more than 230 individuals with IDD and
+their families in Callaway County.
+
+In 2025, personal property taxes represent approximately 27.24% of the local developmental
+disability tax levy. Provisions in HB 2709 that limit inflationary growth adjustments and
+constrain levy calculations reduce CCSS’s ability to maintain purchasing power over time. As
+service demand, workforce costs, and regulatory requirements increase, these constraints create
+structural pressure that may necessitate service reductions absent a sustainable replacement
+mechanism.
+
+In response to a previous version, officials from the St. Louis City Assessor and the Phelps
+County Sheriff each assumed the proposal will have no fiscal impact on their respective
+organizations. Oversight does not have any information to the contrary. Therefore, Oversight
+will reflect a zero impact in the fiscal note for these agencies.
+
+Oversight only reflects the responses that we have received from state agencies and political
+subdivisions; however, other local political subdivisions were requested to respond to this
+proposed legislation but did not. Upon the receipt of additional responses, Oversight will review
+to determine if an updated fiscal note should be prepared and seek the necessary approval to
+publish a new fiscal note. A general listing of political subdivisions included in our database is
+available upon request.
+
+FISCAL IMPACT – State Government FY 2027
+(10 Mo.)
+FY 2028 FY 2029
+
+ $0 $0 $0
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 11 of 14
+March 4, 2026
+KLS:LR:OD
+FISCAL IMPACT – Local Government FY 2027
+(10 Mo.)
+FY 2028 FY 2029
+LOCAL POLITICAL
+SUBDIVISIONS
+
+Cost – Counties (Various Sections) To
+administer the changes to rate
+calculation from this proposal  $0   (Unknown) (Unknown)
+
+Revenue Loss/Gain – (§137.073)
+Subclass levy changes p. 3 $0
+(Unknown) to
+Unknown
+(Unknown) to
+Unknown
+
+Revenue Loss – (§137.073) Personal
+property value increases not considered
+new construction pp. 3-4 $0   (Unknown) (Unknown)
+
+ESTIMATED NET EFFECT ON
+LOCAL POLITICAL
+SUBDIVISIONS $0
+(Unknown) to
+Unknown
+(Unknown) to
+Unknown
+
+FISCAL IMPACT – Small Business
+
+A direct fiscal impact on small businesses could be expected as a result of this proposal.
+
+FISCAL DESCRIPTION
+
+This bill requires any ballot seeking approval to add or change a tax of real property to express
+the effect of the change in the ballot in terms of real dollars owed per $100,000 of a property’s
+market valuation. (Section 137.067, RSMo)
+
+Currently, any political subdivision that received approval for a tax rate increase may levy a
+property tax rate to collect substantially the same amount of tax revenue as the amount of
+revenue that would have been derived by applying the voterapproved increased tax rate ceiling to
+the total assessed valuation of the political subdivision. However, the tax rate must not exceed
+the greater of the most recent voter-approved rate or the most recent adjusted voter-approved
+rate.
+
+The bill removes mention of the single tax rate in the exception, and provides that the rates of
+levy for each subclass of real property, individually, and personal property, in the aggregate,
+must not exceed the greater of the most recent voter-approved rate or most recent adjusted voter
+approved rate.
+
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 12 of 14
+March 4, 2026
+KLS:LR:OD
+Currently, if the tax revenue from various tax rates is different than the tax revenue that would
+have been determined from a single tax rate, then the political subdivision must revise the tax
+rates of those subclasses of real property, individually, and/or personal property, in the aggregate
+that had a tax rate reduction. This revision must yield an amount equal to the difference and must
+be apportioned among the subclasses of real property, individually, and/or personal property, in
+the aggregate, based on the relative assessed valuation of the class or subclasses that experienced
+the tax rate reduction.
+
+Additionally, for school districts that levy separate tax rates on each subclass of real property and
+personal property, in the aggregate, or that had voter-approved ballots that set or increased the
+subclass rates differently prior to 2011, a blended tax rate must be used to calculate the single tax
+rate. Finally, personal property tax rates are not allowed to increase above the personal property
+levy of the previous year, even as a part of this revenue-balancing adjustment.
+
+This bill repeals this language. Political subdivisions are no longer required to compare revenues
+generated by multiple levies to a single-rate baseline or to adjust multiple levies based on a
+single-rate baseline.
+
+Currently, the term "improvements" applies to both real and personal property. Additionally, the
+aggregate increase in valuation of personal property for the current year compared to the
+previous year must be equivalent to the new construction and improvements factor for personal
+property. The bill provides that the term "improvements" applies only to real property and
+repeals the provision setting the aggregate increase in valuation of personal property equal to the
+new construction and improvements factor for personal property.
+
+This bill requires all voter-approved tax levy increases applied to any real and personal property
+to be applied to each subclass of property equally.
+
+The bill provides that, if voters approve a subsequent levy increase prior to the expiration of a
+temporary levy increase, the new tax rate ceiling must remain in effect until the temporary levy
+expires. At that time, the tax rate ceiling must be decreased by the amount of the temporary levy
+increase. If voters of a political subdivision are asked to approve an additional permanent tax rate
+ceiling increase prior to the expiration of a temporary levy increase, voters must be provided
+ballot language that indicates that the temporary levy must be made permanent if the permanent
+levy increase is approved.
+
+A reduction or an increase to the tax rate ceiling in a nonreassement year must be applied in the
+following year of general reassessment.
+
+This bill provides that, when voters pass an increase of a tax rate, the political subdivision must
+use the current tax rate ceiling and the approved increase to establish the rates of the levy for the
+tax year immediately following the election. If the assessed valuation of real property is reduced
+in the tax year following the election, the political subdivision can raise its levy rates so that the
+revenue received from its local real property equals the amount the political subdivision would
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 13 of 14
+March 4, 2026
+KLS:LR:OD
+have received from the increased rates of levy if there had been no reduction in the valuation.
+Using the increased tax rate ceiling must be revenue neutral. (Section 137.073, RSMo)
+
+As it relates to setting property tax rates, the bill repeals mention of a single property tax rate and
+replaces the language with that relating to multiple tax rates. (Section 137.079, RSMo)
+
+Currently, any county and city not within a county can opt out of implementing the provisions of
+certain sections of HB 1150 (2002) and certain provisions of SB 960, which includes setting
+separate levies to be calculated for each subclass of real property and for personal property using
+the assessed valuation for each class of real property and of personal property. Any county and
+city not within a county may also opt out of implementing certain provisions of HB 1150 (2002)
+and certain provisions of SB 960 as they relate to tax rate ceilings, blended tax rates, tax rate
+calculations, and credit card usage to pay property taxes.
+
+The bill repeals the references to the provisions of HB 1150 (2002) and SB 960 (2004), as well
+as the corresponding procedures to opt out of such provisions. (Section 137.115, RSMo)
+
+As it relates to borrowed money and issued bonds by school boards of certain districts, notice of
+the submission of the question of any loan for a ballot must include the amount of the loan
+required and the purpose of the loan. (Section 164.121, RSMo)
+
+This legislation is not federally mandated, would not duplicate any other program and would not
+require additional capital improvements or rental space.
+
+SOURCES OF INFORMATION
+
+Department of Social Services
+State Tax Commission
+St Louis City Assessor
+Washington County Assessor
+Howell County Assessor
+Lincoln County Assessor
+County Employees’ Retirement Fund (CERF)
+Adair County SB 40 DD Board
+Boone County SB 40 (Boone County Family Resources)
+Callaway County SB 40 Board
+St. Louis City Assessor
+Phelps County Sheriff
+Newton County Health Department
+Kansas City Police Department
+St. Louis County Police Department
+Eastern Clay Ambulance District
+Canton R-V School Districts
+Hannibal 60 School District
+L.R. No. 3917H.02C
+Bill No. HCS for HB Nos. 2709 & 2671
+Page 14 of 14
+March 4, 2026
+KLS:LR:OD
+Jessica Harris
+Assistant Director
+March 4, 2026
+Julie Morff
+Director
+March 4, 2026
+Raymore-Peculiar R-II School District
+Richland R-I School District
+Salem R-80 School District