HB660--LOCALTAXATION
SPONSOR: Keathley
COMMITTEEACTION:Voted"DoPass"bytheStandingCommitteeon
WaysandMeansbyavoteof6to3.
Thisbillspecifiesthatifapoliticalsubdivisionsubmitsatax
proposalforaneworincreasedtaxauthorizedunderaspecific
statuteanditdoesnotpass,theproposalcannotbesubmitted
againfortwoyearsfollowingtherejection.
Thebillallowsapoliticalsubdivisiontoreintroduceapreviously
rejectedtaxproposaltovotersbeforethenextelectioncycleif
thenewproposalintroducesanewtaxauthorizedbylawor
increasestherateofexistingtaxauthorizedbylawinafederal-
orstate-declarednaturaldisasterarea.
Thebillrequiresthatifthegoverningbodyofamunicipality
wishestoestablishasalestaxbywayofaproposedcommunity
improvementdistrict,theordinancemustbeapprovedbyatwo-
thirdsvoteofthegoverningbody.Anyordinanceorpetition
approvedundertheseprovisionsthatestablishesadistrictthatis
fundedbyasalestaxisrequiredtopassbyatleastatwo-thirds
majorityvote.
Thisbillexemptsnon-profitentitiespursuantto26U.S.C.Section
501(c)fromanypropertytaxorspecialassessmentthatmightbe
leviedbyataxingdistrict.
Thisbillalsorequiresthatanyballotmeasureproposingatax
alterationonrealpropertymustclearlystatetheimpactofthe
proposedchangeintermsoftheactualamountper$100,000ofa
property'smarketvaluewithintheballotlanguage.
Thebillrequiresthatifvotersareaskedtoapproveapermanent
increasetothetaxrateceilingbeforeatemporarylevyincrease
expires,theballotlanguagemustclearlyindicatethatifthe
permanentincreaseisapproved,thetemporarylevywillbecome
permanent.
Thebilldefines"currenttaxrateceiling"and"increasedtaxrate
ceiling". Whenamajorityofvotersinapoliticalsubdivision
approveataxrateincrease,thesubdivisionmustusethecurrent
taxrateceilingandtheapprovedincreaseforthefollowingtax
year.Iftheassessedvaluationofrealpropertydecreasesinthat
year,thesubdivisioncanadjustitslevyratestoensureit
receivesthesamerevenueitwouldhavereceivedwithoutthe
propertyvaluereduction. Theuseoftheincreasedtaxrate ceilingmustberevenueneutral,asmandatedbytheMissouri
Constitution.
Thisbillfurtherrequiresthatanyprojectproposalsfroma
transportation developmentdistrictbesubmittedtotheMissouri
HighwaysandTransportation Commission,ortothelocal
transportation authority,asapplicable,forapprovalpriortothe
constructionorfundingofanyproject. TheMissouriHighwaysand
Transportation Commission,orthelocaltransportation authority,
asapplicable,mustapprovetheprojectbyatwo-thirdsmajorityif
theproposedprojectistobefundedbyasalestax.
ThisbillissimilartoHCSHB2058(2024).
PROPONENTS: Supporterssaythatfortoolongcitizenshavebeen
manipulatedbylocalgovernmentofficialstosupportsalestaxes,
sothisbillisnecessarytoprotecttaxpayersandsmall
businesses,aswellashalttheexploitation. Political
subdivisionsshouldnotbeabletorepeatedlyplaceataxincrease
ontheballotifvotersrejectsuchanincrease.
TestifyinginpersonforthebillwereRepresentative Keathley;
DennisGanahl,MissouriTaxReliefNow.
OPPONENTS: Thosewhoopposethebillsaythatcitiesandpolitical
subdivisionsdonothaveenoughmoneytopromoteaballotissue,
onlyinformationonameasure. Manymunicipalities havesmall
budgetsforcampaigning,advertising,andpromotion,andthe
electionitselfisthesharingofinformationonaballotmeasure.
Citiesdon'ttrytosneaktaxesinontheirconstituents,butthere
areneededimprovementstobedoneandservicestobeprovided.
TestifyinginpersonagainstthebillwereMissouriEconomic
DevelopmentFinancingAssociation;MissouriMunicipalLeague;
MissouriAssociationofCounties;MunicipalLeagueofMetroSt.
Louis;CityofSpringfield;MissouriSchoolBoardsAssociation;
CityofIndependence.
OTHERS:Otherstestifyingonthebillsayelectionauthoritiesdo
notwanttobeinthemiddleofapoliticalissueasitpertainsto
howballotmeasuresarenamedorordered.
TestifyinginpersononthebillwereKennyMohr,MissouriState
Assessor'sAssociation;MissouriAssociationofCountyClerksAnd
ElectionAuthorities.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.