Missouri’s New Tax Law: Relief or Roadblock?

Jun 27, 2025

Written by David Dodge

Missouri’s Governor Mike Kehoe signed a new law, SB 3, to help some homeowners keep their property taxes in check. But it’s stirred up a fuss because it only helps folks in certain counties and might not follow the state’s rules. Here’s what you need to know, plain and simple.

What’s in the Bill?

This law, often called the “stadium bill” because it also funds Kansas City sports stadiums, puts a cap on property tax increases for some Missouri homeowners. Here’s the breakdown:

In 75 counties, like Dallas and Polk, your property tax bill can’t go up more than 5% or the Consumer Price Index each year (whichever’s higher).
In 22 counties, like Christian and Lawrence, taxes are frozen—no increases at all.
These counties need voter approval by April 2026 to make it official.

But not everyone’s included. Counties like Greene County miss out, so homeowners there get no break. Missouri’s average property tax rate is 0.91%, close to the national 0.90%. The typical homeowner here pays about $1,812 a year, less than the national $3,057.

Why’s It a Big Deal?

This bill’s got people talking for a few reasons:

Is It Legal? Some folks, like lawyer Dave Roland, say the bill might break Missouri’s Constitution, which bans “local laws” that treat different places unfairly. The way 97 of 114 counties were picked for tax caps seems random, with counties from 7,000 to 500,000 people grouped oddly.
Not Fair for Everyone: Only some counties get the tax cap, leaving others without relief. Critics say it’s not right that some homeowners benefit while others don’t.
Paying for It: Property taxes fund things like schools, police, and libraries. Rep. Kathy Steinhoff worries that capping taxes could mean less money for these services, and other taxes might go up to cover the gap.

What’s the Bigger Picture?

Property taxes are a hot topic because home prices have skyrocketed, making tax bills tougher, especially for seniors. States like Texas and Florida are also cutting property taxes. Missouri’s bill is unique because it’s tied to stadium funding, which some say favors wealthy team owners. It passed with a 90-58 vote, despite pushback from both parties.

What’s Next?

Voters in the 97 counties will decide by April 2026 if they want these caps. The bill could face court challenges, but Missouri courts rarely strike down laws like this unless they’re clearly off-base. If it sticks, counties left out might push to join in later.

For now, this bill could help some Missourians save on property taxes, but it’s got people wondering if it’s fair and what it means for schools and roads down the line.

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