Proposes a constitutional amendment to allow the general assembly to exempt tangible personal property from personal property taxation by general law
Impact
If enacted, HJR88 would directly affect how personal property taxes are assessed and implemented across Missouri, particularly benefiting industries that rely on large amounts of raw materials and goods for resale. The proposed changes are expected to promote investment and operational efficiency in sectors vital to the state's economy. Additionally, the bill establishes a framework for compensating local governments for lost revenues due to such exemptions, creating a mechanism for maintaining essential funding sources even as tax liabilities are decreased for certain property types.
Summary
HJR88 proposes a constitutional amendment that would allow the General Assembly of Missouri to exempt tangible personal property from personal property taxation by general law. This measure seeks to repeal the existing provisions in Section 6 of Article X of the Missouri Constitution and replace it with new regulations governing tax exemptions for personal property held by manufacturers, refiners, distributors, and retailers. The amendment aims to provide more flexibility in taxation, particularly for businesses involved in industrial activities, thereby potentially fostering an environment conducive to economic growth within the state.
Contention
Notably, this bill has elicited significant debate among lawmakers and stakeholders. Proponents argue that removing the burden of personal property taxes on industries will enhance Missouri's competitiveness and attract new businesses. However, critics contend that such tax exemptions could lead to substantial revenue losses for local governments, impacting public services and infrastructure financing. Concerns are also raised regarding the long-term fiscal sustainability of such measures, as exemptions could hinder the ability of local jurisdictions to maintain equitable funding for essential services.
Reduces the assessment percentage of certain personal property and provides a personal property tax exemption for certain personal property upon adoption of a constitutional amendment authorizing such exemption