Proposes a constitutional amendment relating to residential real property tax assessments
The new section proposes that residential properties, classified under specific subclasses, will be assessed at a percentage of their true value as defined by law. Notably, it includes provisions that allow annual increases in assessed valuations limited to either the change in the Consumer Price Index, or a maximum increase of two percent, whichever is lower. This measure aims to provide homeowners with stability regarding their property taxes, which can often fluctuate unpredictably due to market conditions.
HJR120 is a proposed joint resolution introduced by Representative Hicks during the 102nd General Assembly. This resolution seeks to amend Article X of the Missouri Constitution by repealing Section 4(b) related to property tax assessments and replacing it with a new provision that establishes a framework for assessing residential real property. The primary focus of this amendment is to define how residential properties can be assessed for tax purposes and to establish limits on increases in assessed valuations to ensure fairness and predictability for property owners throughout the state.
Despite the intent to create a fair assessment structure, HJR120 may face contention. Critics could argue that limiting property tax assessments based on the Consumer Price Index and capping annual increases could lead to revenue losses for local governments. As property values rise, these restrictions might hinder funding for essential services that rely on property tax revenue. Proponents, however, believe these changes will promote economic stability and protect homeowners from excessive tax burdens that can arise from rapid market fluctuations.