Missouri House Bill HB2061

Missouri 2024 Regular Session

• Introduced: 1/3/24
• Refer: 2/8/24

Caption

Creates provisions relating to local ballot proposals by political subdivisions to impose a new tax or increase the rate of an existing tax

Impact

The implications of this bill are significant for local governments and their ability to propose tax measures to fund essential services and projects. By restricting the frequency with which tax proposals can be resubmitted following voter rejection, the bill aims to prevent voter fatigue regarding tax issues while encouraging political subdivisions to carefully consider their tax proposals before presenting them to the electorate. This could lead to a decrease in the number of new taxes or tax increases, affecting local budgets and funding for community services.

Summary

House Bill 2061 introduces amendments to Chapter 67 of the Revised Statutes of Missouri by adding a new section aimed at regulating how local ballot proposals for new taxes or increases to existing tax rates can be submitted. The bill states that if a proposal put forth by any political subdivision is rejected by voters, it cannot be resubmitted for four years unless it undergoes substantial changes. These changes can include either a significant reduction in the proposed tax rate or a shift to different dedicated funding provisions compared to the previously rejected proposal.

Contention

Notable points of contention surrounding HB2061 include concerns from some lawmakers and community advocates about the potential hindrance it poses to local governance. Opponents argue that the four-year waiting period restricts local governments' responsiveness to changing conditions and requires them to adhere to often rigid timelines for securing funding through taxation. Additionally, the language surrounding what constitutes a 'substantial change' may lead to varying interpretations, thus complicating the process for local entities seeking to address immediate fiscal needs.