Unfair Taxes? Missouri’s Fight for a Simpler Property Tax System

Written by David Dodge  

Missouri’s property tax system is confusing and outdated, and lawmakers are working to fix it before courts step in, as they did years ago. The Missouri House Special Interim Committee on Property Tax Reform is holding public hearings to find solutions for fair property taxes and equitable assessments.

Why Missouri’s Property Tax System Needs Change

The current property tax system in Missouri creates unfair situations. Similar homes can have wildly different tax bills because some counties don’t update property values regularly. This issue led to a 1979 Missouri Supreme Court ruling that required property assessments to reflect current market values, after St. Louis County homeowners sued over unequal taxes.

To address these problems, the committee is hosting four public hearings across Missouri to hear from residents:

• July 30: Lebanon, Wallace Center, 325 Harwood Ave., 5:30 p.m.
• August 13: Kansas City, Union Station Board Room, 30 W. Pershing Road, 5:30 p.m.
• August 20: Clayton, Center of Clayton, 50 Gay Ave., 5:30 p.m.
• August 27: Macon, Comfort Inn, 1821 N. Missouri, 5:30 p.m.

These meetings are a chance for Missourians to share ideas on improving property tax fairness.

Rising Home Values Mean Higher Taxes

As home prices soar, property tax bills are hitting Missouri homeowners hard, especially seniors and those on fixed incomes. In 2023, lawmakers passed a law letting counties freeze property taxes for people 62 and older. About 60 counties have adopted this property tax freeze. Recent laws also limit tax bill increases to 5% per year or the inflation rate (whichever is higher) in 75 counties, with 22 counties banning increases entirely.

Property taxes fund local services like schools, libraries, cities, and fire districts. However, the system is complex, with different tax rates for homes, businesses, farms, and personal property like cars. The Hancock Amendment of 1982 requires local governments to lower tax rates when property values rise too fast, preventing them from collecting extra revenue unfairly.

Simplifying a Complicated System

Missouri’s property tax system is hard to navigate, with 2,807 taxing authorities setting 4,856 different tax rates, according to a 2024 state auditor’s report. Lawmakers want a simpler, fairer system. Some suggest replacing property and income taxes with a sales tax, but rural areas with few businesses argue this won’t work.

The State Tax Commission is pushing counties to update property assessments to match market values (90%–110% of a property’s worth). However, not all counties agree, raising fears of lawsuits and costly statewide reassessments.

Balancing Taxpayer Relief and Community Needs

Local services, especially schools, rely heavily on property taxes. Schools can’t impose other taxes like sales tax, so any changes must protect their funding. For example, a Kansas City library district saw home values rise 56% from 2021 to 2023, but the Hancock Amendment kept revenue growth to 18%, offering some taxpayer relief.

Some advocates propose freezing all property assessments after the next cycle to simplify the process. Others warn that inconsistent county practices could lead to legal battles, as seen in 1979.

Get Involved in Missouri Property Tax Reform

Missouri’s property tax system needs urgent reform to ensure fairness and transparency. The upcoming public hearings are a chance for residents to share their thoughts on reducing tax burdens while supporting schools and local services. Attend a hearing or follow the committee’s progress to stay informed.

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