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
Impact
The implementation of HB988 would alter the present framework governing personal property taxation in Missouri significantly. By exempting certain categories of personal property from taxation, the bill may lead to reduced revenue for local governments that rely on property tax for funding public services. This change is part of a broader trend to alleviate the tax burden on specific sectors, potentially benefiting farmers and owners of older vehicles and machinery. However, the implications for local budgets require careful consideration and planning to avoid funding shortfalls in essential community services.
Summary
House Bill 988 aims to reduce the assessment percentage of certain types of personal property and provides a tax exemption for specific property categories following a constitutional amendment. The bill proposes the repeal of the existing section 137.115 of the Missouri Revised Statutes and enacts two new sections, aiming to clarify definitions and establish guidelines for tax assessment on personal property including motor vehicles and farm machinery. Under the new provisions, farm machinery and motor vehicles manufactured ten years or more prior to the current year would be exempt from state and local taxation, which is a significant shift in property tax policy in Missouri.
Contention
There may be notable points of contention regarding HB988, particularly concerning concerns over how the tax exemptions might affect future funding for local services. Advocates of the bill may argue that it incentivizes investment in farming and older vehicles, thus stimulating economic activity in Missouri. Critics, however, could express concerns that the loss of property tax revenue could harm local governments' abilities to fund education, law enforcement, and other public services, thereby raising questions about the bill's long-term sustainability and its potential to create disparities in resource availability across different jurisdictions.
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
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
Authorizes a property tax exemption for certain property used for childcare, contingent upon passage and approval by the voters of a constitutional amendment permitting a property tax exemption.