Replaces the property tax on real property with a sales tax
Impact
If implemented, SJR82 would fundamentally reshape the revenue collection mechanisms for local governments. The proposed sales tax would align with the total combined sales tax rate in the locality, and this new tax structure would mandate that all revenue be distributed in a manner consistent with the previous ad valorem tax. Taxpayers would have multiple options for tax payment, which includes options to pay the full amount upfront or in installments over several years. This could provide taxpayers with flexibility while generating ongoing revenue for counties.
Summary
SJR82, introduced by Senator Brattin, proposes a significant amendment to the Missouri Constitution regarding the taxation of real property. This resolution seeks to repeal the existing Section 26 of Article X, which currently outlines the framework for property tax collection and replace it with two new sections. The most notable change would be the replacement of ad valorem property taxes with a sales tax on certain property classifications, specifically class 1 properties, starting January 1, 2025. This shift aims to modernize how taxation is managed at the county level in Missouri.
Contention
The transition from property tax to sales tax has raised concerns among various stakeholders, particularly regarding its potential impact on low-income families and the consistency of revenue for municipalities. Critics argue that shifting the tax burden could disproportionately affect those with fixed incomes or lower earnings, as the sales tax might lead to larger immediate expenses compared to a property tax. Proponents of the bill, however, believe it could simplify the tax system and make it more equitable by basing taxation on sales rather than property valuations, which can often be subjective and vary significantly from one locality to another.
(Constitutional Amendment) Authorizes agents of the tax collector to sell property for delinquent taxes and requires the fee of the authorized agent to be included within the costs recoverable in the tax sale (EN DECREASE LF EX See Note)