Reduces the assessment percentage of certain real property
Impact
The proposed changes are likely to result in a significant decrease in property taxes for owners of real estate and manufactured homes, which proponents argue could enhance financial relief for residents. Additionally, counties and cities will have options to opt-out from certain provisions of the bill, which adds a layer of local flexibility in tax assessments. However, this could lead to disparities in tax rates across different areas, as local governments may decide differently based on their specific fiscal needs.
Summary
House Bill 1831 seeks to amend the assessment rates for various classes of real property in Missouri, specifically targeting how real property and manufactured homes are taxed. The bill aims to establish a lower assessment percentage for certain subclasses of real estate as well as for manufactured homes used as dwelling units. This new legislation would allow properties within specific subclasses to be assessed at 15% of their true value in money starting January 1, 2025, rather than the higher rates currently in place.
Contention
There are concerns regarding the potential implications of the legislation, particularly its effects on local revenue generation. Critics argue that lowering assessment rates may severely impact funding for essential local services such as education and public safety. Additionally, the provision allowing local governments to opt-out of certain tax assessments could create complexities and confusion regarding the actual tax liabilities of homeowners and local entities. It's essential for discussions around this bill to consider how much weight should be given to local governance against the backdrop of state-level legislation on property assessments.
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