HCS SS SCS SB 960 -- PROPERTY TAX REASSESSMENTS

This bill makes technical changes to various provisions of the
property tax law in House Bill 1150 enacted in 2002.  It
clarifies that the inflationary growth factor allowed to be
applied for each class or subclass of property upon reassessment
may differ among the types of property.  The limit for growth
will be equal to the actual assessment in the class or subclass.
However, the net limit for the political subdivision will still
be the Consumer Price Index or 5%, as mandated by the Missouri
Constitution.

The bill prevents the rollback calculation of the rates for the
four classes of property from causing a roll-up of the personal
property tax rate.  When a rate must be revised-up to hold the
political subdivision harmless after making the above
calculation, the revision will be weighted based on the relative
assessed valuation of the class or subclass of the property.

All existing and any future rules or forms interpreting the rate
calculation in Section 137.073, RSMo, must be promulgated by rule
and not incorporated into a rule by reference.

The City of St. Louis and counties other than St. Louis County
are allowed to opt-out of the provisions of House Bill 1150.
Current law makes these provisions effective January 1, 2005, but
the bill changes the effective date to October 1, 2004, but then
allows an opt-out provision before January 1, 2005.  Once the
provisions of House Bill 1150 are implemented in a county in a
year of general reassessment, the county cannot opt-out.  Any
county that does opt-out may opt-in at a later date.  If a
political subdivision lies on the border of two or more counties
and one of those counties has opted out without the others doing
so, the governing body of the political subdivision must
calculate a single blended rate for the school districts in the
political subdivision.

The percentage taken from property tax collections for deposit
into the county assessment fund is increased 1/8 of 1% in
counties of the first classification, counties with a charter
form of government, and the City of St. Louis to a maximum
additional amount of $100,000 in any year for any county.  In
counties of the second, third, and fourth classification, an
additional one-quarter of 1% will be deducted from the
collections of all ad valorem property tax, not to exceed $50,000
in any year for any county.  The additional portion of property
tax collections deposited into the county assessment funds will
not be required when the State Tax Commission certifies an
equivalent sales ratio for the county of less than or equal to
31 2/3% of the provisions of Section 138.395, RSMo.  The State
Tax Commission is required to conduct a study in four years after
the bill becomes effective, to determine the impact of increased
fees on assessed valuation.  This subsection has an expiration
date of December 31, 2009.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am