HJR 79 -- Real Property Tax Limit

Sponsor:  Davis

Upon voter approval, beginning January 1, 2009, this proposed
constitutional amendment limits the increase in real property tax
rates to the rate in effect on December 31, 2005, plus inflation.
For each subsequent year, the tax rate will equal the proceeding
year's rate plus inflation or a voter-approved rate increase.
The limitation does not apply to property tax or special
assessments levied to pay the principal, interest, and redemption
charges on bonded indebtedness or other long-term obligations.

The local government district's fiscal year spending is limited
to the rate of inflation in the prior calendar year plus any
annual local growth.  An emergency reserve cash fund is created
in each district to be used for declared emergencies only.  The
district must transfer revenue in excess of the spending limit to
the fund so that at year end the balance is 1% of the spending
limit.  Excess reserves are refunded through temporary property
or sales tax reductions.

The amendment removes the countywide property tax on utility,
industrial, commercial, railroad, and other property that is not
residential, agricultural, or horticultural property originally
implemented for the replacement of lost revenue from the tax
exemption of certain personal property of manufacturers,
refiners, distributors, wholesalers, and retail merchants and
establishments.

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