HCS HJR 43 -- REAL PROPERTY TAX REVENUE LIMITATIONS

SPONSOR:  Sutherland (Portwood)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 7 to 0 with 1 present.

Upon voter approval, this proposed constitutional amendment
alters the rollback requirement for the Hancock Amendment by
requiring the current levy, not the maximum authorized levy, to
be reduced to yield the same gross revenue for existing property
as before an increase in assessed valuations, with an adjustment
for changes in the general price level.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the problem for the past eight
years has been property tax and how to reform it.  There are two
ways to fix the problem either Chapter 137, RSMo, tax rate
ceiling changes, subject to a constitutional challenge, or this
bill.  The bill amends Section 22 of Article X of the Missouri
Constitution to require a county to roll back the levy when the
tax increase is more than the federal Consumer Price Index.
Schools are inflating their tax ceiling so they don't need to
roll back.  The State Tax Commission assisted with the bill,
based on a recommendation by the Property Tax Taskforce.  The
taskforce meetings showed the serious concerns of constituents,
especially in the St. Louis area.  The elderly and hard-working,
middle-class people want to pay their tax, but are having a hard
time doing so.  The bill removes "maximum allowable" so the
current tax levy is used to determined any roll back.  Political
subdivisions will still be able to grow but within its means like
the people they serve.

Testifying for the bill were Representatives Portwood and Lembke.

OPPONENTS:  Those who oppose the bill say that the bill will have
a negative impact on revenue for schools.  The main source of
school revenue comes from assessed valuations.  Energy costs,
retirement, and healthcare are growing faster than the cost of
living.  The bill freezes the revenue in each community.  The
average city gets 10% of its revenue from property tax.  Some
districts with a sales tax base may be higher.  Libraries, road
districts, and fire districts could lose funding.

Testifying against the bill were Roger Kurtz, Missouri
Association of School Administrators, School Administrators
Coalition, Missouri National Education Association, Missouri
State Teachers Association, Cooperating School Districts of
Greater Kansas City; Missouri School Boards Association; and
Missouri Municipal League.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm