A major property tax reform bill in the Missouri House was sent back to a special committee Tuesday over concerns that the bill needed more changes.
Sponsored by state Rep. Tim Taylor, a Republican from Bunceton, the wide-ranging bill would change how property taxes are calculated and when property tax measures are voted on.
“There have been concerns with this bill, and from the very beginning we have strived to try to do the very best we can,” Taylor said. “It was finally decided, after many meetings, that we’re going to bring it back to our committee.”
The Special Committee on Property Tax Reform was formed last June to examine Missouri’s property tax system and recommend solutions. Six informational hearings were held across the state last summer by the committee to allow Missouri residents to share their perspectives on rising property taxes.
State Rep. Kathy Steinhoff, a Democrat from Columbia, who is also the ranking minority member for the committee, commended Taylor for his leadership and his decision to send the bill back to the committee.
“I want to thank you for your leadership and having it go back,” Steinhoff said. “I think that is a good place for it to go.”
Steinhoff said that she believes the bill was sent back to committee because of needed clarification over a provision of the bill that would change when voters approve property tax levies from April to November.
Steinhoff also said that because the House did not thoroughly debate the bill on the floor, she believes the move back to committee is a wise decision.
The House initially voted to move the bill forward last Wednesday.
Currently, the assessed value used to determine if property tax rollbacks are required is being diluted because the assessed values on all property classes — residential, commercial and agricultural — in a taxing district are lumped together.
The central provision of the bill is the “siloing” of tax subclasses. This would stop increases in assessed value in one subclass from being diluted by stagnant values in another, allowing the state constitution’s Hancock Amendment to take effect and limit how much personal property taxes can increase.
The bill would also move voting for property tax measures from April elections to November, something that drew concerns from representatives when the bill was brought to the floor last week.
As the bill returns to committee, it will revert to its original form, removing all amendments made on the House floor last week, Taylor said. He added that another public hearing will be held for the bill. On Tuesday, Taylor indicated that he is open to including other amendments.
“He said ‘Bring everything you’ve got,’” Steinhoff said. “I think he is open to hearing some other ideas of what could be included.”
This story originally appeared in the Columbia Missourian. It can be republished in print or online.