HB660--LOCALTAXATION(Keathley)
COMMITTEEOFORIGIN:StandingCommitteeonWaysandMeans
Thebillprovidesthat,beginningJuly1,2026,theDORmust
prominentlydisplaylinksonthehomepageofitswebsitewhich
directthepublictocolor-coded,interactivemapsfeaturingdata
aboutsalesandpropertytaxesinallpoliticalsubdivisionsinthe
state.
AllpoliticalsubdivisionswillprovidetheDORwithdatarelating
topropertytaxesbyJanuary1,2026.TheDORmustalsousethe
mostrecentpublicationoftheMissouristateauditor'sreporton
propertytaxratesinordertoupdateandmaintainthepropertytax
levydataeachyear.
Thisbillspecifiesthatifapoliticalsubdivisionsubmitsatax
proposalforaneworincreasedtaxauthorizedunderaspecific
statuteanditdoesnotpass,theproposalcannotbesubmitted
againfortwoyearsfollowingtherejection.
Thebillallowsapoliticalsubdivisiontoreintroduceapreviously
rejectedtaxproposaltovotersbeforethenextelectioncycleif
thenewproposalintroducesanewtaxauthorizedbylawor
increasestherateofexistingtaxauthorizedbylawinaFederal-
orState-declarednaturaldisasterarea.
Thisbillrequiresthatifthegoverningbodyofamunicipality
wishestoestablishasalestaxbywayofaproposedcommunity
improvementdistrict,theordinancemustbeapprovedbyatwo-
thirdsvoteofthegoverningbody.Anyordinanceorpetition
approvedundertheseprovisionsthatestablishesadistrictthatis
fundedbyasalestaxisrequiredtopassbyatleastatwo-thirds
majorityvote.
Thebillexemptsnon-profitentitiespursuantto26U.S.C.Section
501(c)fromanypropertytaxorspecialassessmentthatmightbe
leviedbyataxingdistrict.
Thisbillrequiresthattheelectionauthorityforapolitical
subdivisionorspecialdistrictlabeltaxation-relatedballot
measuresnumericallyoralphabetically. Ballotmeasureswillnot
belabeledinanyotherdescriptivemanner.
Thebillrequiresthatwhenasinglefamilyhomeisleased,in
wholeorinpart,forlessthan30consecutivedays,thehomewill
notbeconsidered"transienthousing". Thisbillalsorequiresthatanyballotmeasureproposingatax
alterationonrealpropertymustclearlystatetheimpactofthe
proposedchangeintermsoftheactualamountper$100,000ofa
property'smarketvaluewithintheballotlanguage.
Thebillprovidesthatallschooldistrictsandthecounties
levyingcertainsalestaxesmustincludeastaxrevenuetheamount
bywhichtheyloweredtheirpropertytaxratesbecauseofthose
salestaxesintheimmediatelyprecedingfiscalyear.
Thisbillrequiresthatifvotersareaskedtoapproveapermanent
increasetothetaxrateceilingbeforeatemporarylevyincrease
expires,theballotlanguagemustclearlyindicatethatifthe
permanentincreaseisapproved,thetemporarylevywillbecome
permanent.
Thebillprovidesthat,foragoverningbodyofanypolitical
subdivisionthatleviesataxratelowerthanitstaxrateceiling,
thereductiontothetaxrateceilinginanonreassessment year
mustbeappliedintheimmediatelyfollowingyearofgeneral
reassessment. Thisbillalsoprovidesthatanincreaseofthe
previouslyloweredtaxratetothetaxrateceilingina
nonreassessment yearmustbeappliedintheimmediatelyfollowing
yearofgeneralreassessment.
Thebilldefines"currenttaxrateceiling"and"increasedtaxrate
ceiling". Whenamajorityofvotersinapoliticalsubdivision
approveataxrateincrease,thesubdivisionmustusethecurrent
taxrateceilingandtheapprovedincreaseforthefollowingtax
year.Iftheassessedvaluationofrealpropertydecreasesinthat
year,thesubdivisioncanadjustitslevyratestoensureit
receivesthesamerevenueitwouldhavereceivedwithoutthe
propertyvaluereduction. Theuseoftheincreasedtaxrate
ceilingmustberevenueneutral,asmandatedbytheMissouri
Constitution.
ThisbillallowstheStateTaxCommission(STC)tochoosea
nationallyrecognizedautomotivetradepublicationsuchasthe
NationalAutomobileDealers'AssociationOfficialUsedCarGuide
(NADA),KelleyBlueBook,Edmunds,orothersimilarpublication.
Theassessorofeachcountywillthenusethetrade-invalue
publishedinthecurrentOctoberissueofthepublicationselected
bytheSTC.
Thebillalsoprovidesthattheassessormustnotassessamotor
vehicleforanamountgreaterthanthemotorvehiclewasproperly
assessedinthepreviousyear. ThisbillprovidesthatwhenanorderisissuedbytheStateTax
Commissionthatrequiresacountytocomplywithstatelawby
modifyingorequalizingassessedvaluations,andthose
modificationsresultinareductionoftheassessedvaluations,the
countyisallowed60daystocomeintocompliance. Theordermust
statethedeadlineforcompliance,buttheSTCmayextendthe
deadlineuponthecounty'srequestbyanadditional30days,fora
totalofnomorethan90daystoreachcompliance.
Ifthecountyfailstocomply,theSTCmaydirecttheDepartmentof
Revenue(DOR)towithholdlocalsalestaxmoneysthatthecounty
wouldotherwisebeentitledto.Thewithholdingwillremainin
effectuntiltheSTCdeterminesthatthecountyhascomeinto
compliancewiththeorder.
Theamountoflocalsalestaxthatmaybewithheldmustequal100%
ofthetotaldollaramountoftheimproperassessmentsthatwerein
excessofthestatutorilyallowedamounts. Thesalestaxrevenue
willbedepositedintothenewlycreated"CountyAssessment
NoncomplianceTrustFund".TheSTCmustnotifythecountyofthe
withholdingandprovideinformationonhowthecountymaycurethe
non-complianceinordertoreleasethewithheldrevenue.
Ifthenoncompliantcountycomesintocompliance,theSTCmust
notifyDORthatitmayreleaseandremitthepreviouslywithheld
localsalestaxrevenuetothecounty.Acountyisnotentitledto
interestonthewithheldfunds.
AcountymayseekjudicialreviewoftheSTC'sdeterminationof
non-compliance.
IftheSTCdeterminesthatacountyisnon-compliant,andthe
determinationresultsinthewithholdingofsalestaxrevenue,the
countymayseekjudicialreviewofthatdeterminationwithin30
days.
IfthecourtsubsequentlyfindsthattheSTC'sdeterminations were
madeinerror,thecourtmustorderthattheamountofsalestax
revenuewithheldbereturnedtothecounty,withinterestonthe
amountswrongfullywithheld. Theinterestwillbepaidfromthe
StateLegalExpenseFund.Acountyisnotentitledtointerestif
thecourtupholdstheSTC'sdeterminations.
Thisbillallowsataxingauthoritytoestablishaproration
programforpaymentsofpersonalpropertyontotaledmotor
vehicles. Thetaxingauthoritymayawardaproratedpropertytax
creditduringthetaxyeartoreducethetotalpersonalproperty
taxowedonatotaledmotorvehicleandclaimedagainsttheamount
ofpersonalpropertytaxdueattheendofthesametaxyear. Theproratedpropertytaxcreditmustbeproratedonamonthly
basis.Theamountofthecreditisdeterminedbyaratio,where
thenumeratormustbethenumberoffullmonthsfromthedateof
dispositionofthetotaledmotorvehiclecontinuingthroughthe
closeofthetaxyear,andthedenominatoris12.Theprorated
propertytaxcreditisnonrefundablebutmayreducethetax
liabilitytozero.
Ataxpayermayapplyforthisprogramif:
(1)Thetotaledvehiclewasowned,registered,andtitledunder
thetaxpayer'snameasofJanuary1ofthetaxyearinwhichthe
vehiclewastotaled;orifownedbyabusiness,thenameofthe
businessorauthorizedagent;
(2)Thetotaledvehiclewasincludedonthelocaltaxingentity's
taxroll,andthetaxpayerwasliableforpersonalpropertytaxes
onthetotaledvehicle;
(3)Thetaxpayerwasuptodateonallstateandlocaltaxesand
feesowedonthetotaledvehicle;and
(4)Thetitleonthetotaledvehiclehasbeentransferredtothe
insurancecompanyandisnolongertitledorregisteredtothe
taxpayernorinthetaxpayer'spossession;
Ifataxpayerwhoparticipatesinthisprogrampurchasesa
replacementvehicleduringthesametaxyearthatthetaxpayer's
vehiclewastotaledandheorshereceivedaproratedpropertytax
credit,thereplacementvehiclewillnotbeincludedinthetax
rollsforthattaxyeartooffsetthepropertytaxliability.
Taxationofthereplacementvehiclemustfollowthenormal
assessmentprocedures.
Ataxingentitymustadoptapersonalpropertytaxproration
programbywayofanordinance. Theordinancemustincludethe
following:
(1)Proceduresanddeadlinesforapplicationandparticipationin
theprogram,aswellasrequireddocumentation, asspecifiedinthe
bill;
(2)Proceduresforverificationandrecordkeepingoftheprorated
propertytaxcreditamount,aswellastheamountofpersonal
propertytaxtobemodified;
(3)Creationofaformforusebytaxpayers; (4)Proceduresforthecreditingoftheamountoftheprorated
propertytaxcredittowardthetaxpayer'spersonalpropertytaxes;
and
(5)Anyotherprovisionthetaxingentitydeemsreasonableand
necessarytoimplementandcarryouttheprogram.
Thetaxingentitymaybyordinanceestablishrulesandprocedures
fortheprogram,andmustmaketheinformationregardingthe
programavailabletothetaxpayers.
Ataxpayerwhoparticipatesintheprogramwillnothavehisorher
righttoprotesttheamountofthetaxpaymentsaffected.
Thisbillfurtherrequiresthatanyprojectproposalsfroma
transportation developmentdistrictbesubmittedtotheMissouri
HighwaysandTransportation Commission,ortothelocal
transportation authority,asapplicable,forapprovalpriortothe
constructionorfundingofanyproject. TheMissouriHighwaysand
Transportation Commission,orthelocaltransportation authority,
asapplicable,mustapprovetheprojectbyatwo-thirdsmajorityif
theproposedprojectistobefundedbyasalestax.Thebill
providesthatpropertyownedbycertainentitiesthatareexempt
fromtaxationmustbeexemptfromanyspecialassessmentleviedby
certaindistrictsaslongasthepropertyisusedinalignmentwith
theentity'stax-exemptpurposes.