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Missouri Senate Bill SB294

Missouri 2025 Regular Session

Missouri Senate Bill SB294 Compare Versions

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22 EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
33 and is intended to be omitted in the law.
44 FIRST REGULAR SESSION
55 SENATE BILL NO. 294
66 103RD GENERAL ASSEMBLY
77 INTRODUCED BY SENATOR BRATTIN.
88 1418S.01I KRISTINA MARTIN, Secretary
99 AN ACT
1010 To repeal section 137.115, RSMo, and to enact in lieu thereof one new section relating to property
1111 taxes.
1212
1313 Be it enacted by the General Assembly of the State of Missouri, as follows:
1414 Section A. Section 137.115, RSMo, is repealed and one new 1
1515 section enacted in lieu thereof, to be known as section 137.115, 2
1616 to read as follows:3
1717 137.115. 1. All other laws to the con trary 1
1818 notwithstanding, the assessor or the assessor's deputies in 2
1919 all counties of this state including the City of St. Louis 3
2020 shall annually make a list of all real and tangible personal 4
2121 property taxable in the assessor's city, county, town or 5
2222 district. Except as otherwise provided in subsection 3 of 6
2323 this section and section 137.078, the assessor shall 7
2424 annually assess all personal property at thirty -three and 8
2525 one-third percent of its true value in money as of January 9
2626 first of each calendar year. Beginning January 1, 2026, all 10
2727 personal property shall be annually assessed at a percent of 11
2828 its true value in money as of January first of each calendar 12
2929 year as follows: 13
3030 (1) A political subdivision shall annually reduce the 14
3131 percentage of true value in money at which personal property 15
3232 is assessed pursuant to this subsection such that the amount 16
3333 by which the revenue generated by taxes levied on such 17
3434 personal property is substantially equal to one hundred 18 SB 294 2
3535 percent of the growth in revenue generated by real property 19
3636 assessment growth. Annual reductions shall be made pursuant 20
3737 to this subdivision until December 31, 2074. Thereafter, 21
3838 the percentage of true value in money at which personal 22
3939 property is assessed shall be equal to the percentage in 23
4040 effect on December 31, 2074; 24
4141 (2) The provisions of subdivision (1) of this 25
4242 subsection shall not be construed to relieve a political 26
4343 subdivision from adjustments to property tax levies as 27
4444 required by section 137.073; 28
4545 (3) For the purposes of sub division (1) of this 29
4646 subsection, "real property assessment growth" shall mean the 30
4747 growth in revenue from increases in the total assessed 31
4848 valuation of all real property in a political subdivision 32
4949 over the revenue generated from the assessed valuation of 33
5050 such real property from the previous calendar year. Real 34
5151 property assessment growth shall not include any revenue in 35
5252 excess of the percent increase in the consumer price index, 36
5353 as described in subsection 2 of section 137.073; 37
5454 (4) Notwithstanding the provisions of subdivisions (1) 38
5555 to (3) of this subsection to the contrary, for the purposes 39
5656 of the tax levied pursuant to Article III, Section 38(b) of 40
5757 the Missouri Constitution, all personal property shall be 41
5858 assessed at thirty-three and one-third percent of its true 42
5959 value in money as of January first of each calendar year; 43
6060 (5) Subject to appropriations, a political subdivision 44
6161 that receives total real and personal property tax revenues 45
6262 below the allowable amount for such political subdiv ision in 46
6363 such calendar year due to the provisions of subdivisions (1) 47
6464 to (4) of this subsection shall receive reimbursement from 48
6565 the state in an amount equal to the amount that such 49
6666 revenues are below the total allowable amount of property 50 SB 294 3
6767 tax revenues for such political subdivision in such calendar 51
6868 year. 52
6969 2. The assessor shall annually assess all real 53
7070 property, including any new construction and improvements to 54
7171 real property, and possessory interests in real property at 55
7272 the percent of its tru e value in money set in subsection [5] 56
7373 6 of this section. The true value in money of any 57
7474 possessory interest in real property in subclass (3), where 58
7575 such real property is on or lies within the ultimate airport 59
7676 boundary as shown by a federal airport la yout plan, as 60
7777 defined by 14 CFR 151.5, of a commercial airport having a 61
7878 FAR Part 139 certification and owned by a political 62
7979 subdivision, shall be the otherwise applicable true value in 63
8080 money of any such possessory interest in real property, less 64
8181 the total dollar amount of costs paid by a party, other than 65
8282 the political subdivision, towards any new construction or 66
8383 improvements on such real property completed after January 67
8484 1, 2008, and which are included in the above -mentioned 68
8585 possessory interest, re gardless of the year in which such 69
8686 costs were incurred or whether such costs were considered in 70
8787 any prior year. The assessor shall annually assess all real 71
8888 property in the following manner: new assessed values shall 72
8989 be determined as of January first o f each odd-numbered year 73
9090 and shall be entered in the assessor's books; those same 74
9191 assessed values shall apply in the following even -numbered 75
9292 year, except for new construction and property improvements 76
9393 which shall be valued as though they had been compl eted as 77
9494 of January first of the preceding odd -numbered year. The 78
9595 assessor may call at the office, place of doing business, or 79
9696 residence of each person required by this chapter to list 80
9797 property, and require the person to make a correct statement 81
9898 of all taxable tangible personal property owned by the 82 SB 294 4
9999 person or under his or her care, charge or management, 83
100100 taxable in the county. On or before January first of each 84
101101 even-numbered year, the assessor shall prepare and submit a 85
102102 two-year assessment maintena nce plan to the county governing 86
103103 body and the state tax commission for their respective 87
104104 approval or modification. The county governing body shall 88
105105 approve and forward such plan or its alternative to the plan 89
106106 to the state tax commission by February firs t. If the 90
107107 county governing body fails to forward the plan or its 91
108108 alternative to the plan to the state tax commission by 92
109109 February first, the assessor's plan shall be considered 93
110110 approved by the county governing body. If the state tax 94
111111 commission fails to approve a plan and if the state tax 95
112112 commission and the assessor and the governing body of the 96
113113 county involved are unable to resolve the differences, in 97
114114 order to receive state cost -share funds outlined in section 98
115115 137.750, the county or the assessor s hall petition the 99
116116 administrative hearing commission, by May first, to decide 100
117117 all matters in dispute regarding the assessment maintenance 101
118118 plan. Upon agreement of the parties, the matter may be 102
119119 stayed while the parties proceed with mediation or 103
120120 arbitration upon terms agreed to by the parties. The final 104
121121 decision of the administrative hearing commission shall be 105
122122 subject to judicial review in the circuit court of the 106
123123 county involved. In the event a valuation of subclass (1) 107
124124 real property within any c ounty with a charter form of 108
125125 government, or within a city not within a county, is made by 109
126126 a computer, computer -assisted method or a computer program, 110
127127 the burden of proof, supported by clear, convincing and 111
128128 cogent evidence to sustain such valuation, sha ll be on the 112
129129 assessor at any hearing or appeal. In any such county, 113
130130 unless the assessor proves otherwise, there shall be a 114 SB 294 5
131131 presumption that the assessment was made by a computer, 115
132132 computer-assisted method or a computer program. Such 116
133133 evidence shall include, but shall not be limited to, the 117
134134 following: 118
135135 (1) The findings of the assessor based on an appraisal 119
136136 of the property by generally accepted appraisal techniques; 120
137137 and 121
138138 (2) The purchase prices from sales of at least three 122
139139 comparable properties and the address or location thereof. 123
140140 As used in this subdivision, the word "comparable" means 124
141141 that: 125
142142 (a) Such sale was closed at a date relevant to the 126
143143 property valuation; and 127
144144 (b) Such properties are not more than one mile from 128
145145 the site of the disputed property, except where no similar 129
146146 properties exist within one mile of the disputed property, 130
147147 the nearest comparable property shall be used. Such 131
148148 property shall be within five hundred square feet in size of 132
149149 the disputed property, and resemble the disputed property in 133
150150 age, floor plan, number of rooms, and other relevant 134
151151 characteristics. 135
152152 [2.] 3. Assessors in each county of this state and the 136
153153 City of St. Louis may send personal property assessment 137
154154 forms through the mail. 138
155155 [3.] 4. The following items of personal property shall 139
156156 each constitute separate subclasses of tangible personal 140
157157 property and shall be assessed and valued for the purposes 141
158158 of taxation at the following percentages of their true value 142
159159 in money: 143
160160 (1) Grain and other agricultural crops in an 144
161161 unmanufactured condition, one -half of one percent; 145
162162 (2) Livestock, twelve percent; 146 SB 294 6
163163 (3) Farm machinery, twelve percent; 147
164164 (4) Motor vehicles which are eligible for registration 148
165165 as and are registered a s historic motor vehicles pursuant to 149
166166 section 301.131 and aircraft which are at least twenty -five 150
167167 years old and which are used solely for noncommercial 151
168168 purposes and are operated less than two hundred hours per 152
169169 year or aircraft that are home built from a kit, five 153
170170 percent; 154
171171 (5) Poultry, twelve percent; and 155
172172 (6) Tools and equipment used for pollution control and 156
173173 tools and equipment used in retooling for the purpose of 157
174174 introducing new product lines or used for making 158
175175 improvements to existing products by any company which is 159
176176 located in a state enterprise zone and which is identified 160
177177 by any standard industrial classification number cited in 161
178178 subdivision (7) of section 135.200, twenty -five percent. 162
179179 [4.] 5. The person listing the property shall enter a 163
180180 true and correct statement of the property, in a printed 164
181181 blank prepared for that purpose. The statement, after being 165
182182 filled out, shall be signed and either affirmed or sworn to 166
183183 as provided in section 137.155. The list shall then be 167
184184 delivered to the assessor. 168
185185 [5.] 6. (1) All subclasses of real property, as such 169
186186 subclasses are established in Section 4(b) of Article X of 170
187187 the Missouri Constitution and defined in section 137.016, 171
188188 shall be assessed at the following percentages of tr ue value: 172
189189 (a) For real property in subclass (1), nineteen 173
190190 percent; 174
191191 (b) For real property in subclass (2), twelve percent; 175
192192 and 176
193193 (c) For real property in subclass (3), thirty -two 177
194194 percent. 178 SB 294 7
195195 (2) A taxpayer may apply to the county asses sor, or, 179
196196 if not located within a county, then the assessor of such 180
197197 city, for the reclassification of such taxpayer's real 181
198198 property if the use or purpose of such real property is 182
199199 changed after such property is assessed under the provisions 183
200200 of this chapter. If the assessor determines that such 184
201201 property shall be reclassified, he or she shall determine 185
202202 the assessment under this subsection based on the percentage 186
203203 of the tax year that such property was classified in each 187
204204 subclassification. 188
205205 [6.] 7. Manufactured homes, as defined in section 189
206206 700.010, which are actually used as dwelling units shall be 190
207207 assessed at the same percentage of true value as residential 191
208208 real property for the purpose of taxation. The percentage 192
209209 of assessment of true value f or such manufactured homes 193
210210 shall be the same as for residential real property. If the 194
211211 county collector cannot identify or find the manufactured 195
212212 home when attempting to attach the manufactured home for 196
213213 payment of taxes owed by the manufactured home own er, the 197
214214 county collector may request the county commission to have 198
215215 the manufactured home removed from the tax books, and such 199
216216 request shall be granted within thirty days after the 200
217217 request is made; however, the removal from the tax books 201
218218 does not remove the tax lien on the manufactured home if it 202
219219 is later identified or found. For purposes of this section, 203
220220 a manufactured home located in a manufactured home rental 204
221221 park, rental community or on real estate not owned by the 205
222222 manufactured home owner shall be considered personal 206
223223 property. For purposes of this section, a manufactured home 207
224224 located on real estate owned by the manufactured home owner 208
225225 may be considered real property. 209 SB 294 8
226226 [7.] 8. Each manufactured home assessed shall be 210
227227 considered a parcel for the purpose of reimbursement 211
228228 pursuant to section 137.750, unless the manufactured home is 212
229229 deemed to be real estate as defined in subsection 7 of 213
230230 section 442.015 and assessed as a realty improvement to the 214
231231 existing real estate parcel. 215
232232 [8.] 9. Any amount of tax due and owing based on the 216
233233 assessment of a manufactured home shall be included on the 217
234234 personal property tax statement of the manufactured home 218
235235 owner unless the manufactured home is deemed to be real 219
236236 estate as defined in subsection 7 of section 442.015, in 220
237237 which case the amount of tax due and owing on the assessment 221
238238 of the manufactured home as a realty improvement to the 222
239239 existing real estate parcel shall be included on the real 223
240240 property tax statement of the real estate owner. 224
241241 [9.] 10. The assessor of each county and each city not 225
242242 within a county shall use the trade -in value published in 226
243243 the October issue of the National Automobile Dealers' 227
244244 Association Official Used Car Guide, or its successor 228
245245 publication, as the recommende d guide of information for 229
246246 determining the true value of motor vehicles described in 230
247247 such publication. The assessor shall not use a value that 231
248248 is greater than the average trade -in value in determining 232
249249 the true value of the motor vehicle without perfor ming a 233
250250 physical inspection of the motor vehicle. For vehicles two 234
251251 years old or newer from a vehicle's model year, the assessor 235
252252 may use a value other than average without performing a 236
253253 physical inspection of the motor vehicle. In the absence of 237
254254 a listing for a particular motor vehicle in such 238
255255 publication, the assessor shall use such information or 239
256256 publications which in the assessor's judgment will fairly 240
257257 estimate the true value in money of the motor vehicle. 241 SB 294 9
258258 [10.] 11. Before the assessor may i ncrease the 242
259259 assessed valuation of any parcel of subclass (1) real 243
260260 property by more than fifteen percent since the last 244
261261 assessment, excluding increases due to new construction or 245
262262 improvements, the assessor shall conduct a physical 246
263263 inspection of such pr operty. 247
264264 [11.] 12. If a physical inspection is required, 248
265265 pursuant to subsection [10] 11 of this section, the assessor 249
266266 shall notify the property owner of that fact in writing and 250
267267 shall provide the owner clear written notice of the owner's 251
268268 rights relating to the physical inspection. If a physical 252
269269 inspection is required, the property owner may request that 253
270270 an interior inspection be performed during the physical 254
271271 inspection. The owner shall have no less than thirty days 255
272272 to notify the assessor of a request for an interior physical 256
273273 inspection. 257
274274 [12.] 13. A physical inspection, as required by 258
275275 subsection [10] 11 of this section, shall include, but not 259
276276 be limited to, an on -site personal observation and review of 260
277277 all exterior portions of the lan d and any buildings and 261
278278 improvements to which the inspector has or may reasonably 262
279279 and lawfully gain external access, and shall include an 263
280280 observation and review of the interior of any buildings or 264
281281 improvements on the property upon the timely request of the 265
282282 owner pursuant to subsection [11] 12 of this section. Mere 266
283283 observation of the property via a drive -by inspection or the 267
284284 like shall not be considered sufficient to constitute a 268
285285 physical inspection as required by this section. 269
286286 [13.] 14. A county or city collector may accept credit 270
287287 cards as proper form of payment of outstanding property tax 271
288288 or license due. No county or city collector may charge 272
289289 surcharge for payment by credit card which exceeds the fee 273 SB 294 10
290290 or surcharge charged by the credit ca rd bank, processor, or 274
291291 issuer for its service. A county or city collector may 275
292292 accept payment by electronic transfers of funds in payment 276
293293 of any tax or license and charge the person making such 277
294294 payment a fee equal to the fee charged the county by the 278
295295 bank, processor, or issuer of such electronic payment. 279
296296 [14.] 15. Any county or city not within a county in 280
297297 this state may, by an affirmative vote of the governing body 281
298298 of such county, opt out of the provisions of this section 282
299299 and sections 137.073, 138.060, and 138.100 as enacted by 283
300300 house bill no. 1150 of the ninety -first general assembly, 284
301301 second regular session and section 137.073 as modified by 285
302302 house committee substitute for senate substitute for senate 286
303303 committee substitute for senate bill no. 960, ninety-second 287
304304 general assembly, second regular session, for the next year 288
305305 of the general reassessment, prior to January first of any 289
306306 year. No county or city not within a county shall exercise 290
307307 this opt-out provision after implementing the provisi ons of 291
308308 this section and sections 137.073, 138.060, and 138.100 as 292
309309 enacted by house bill no. 1150 of the ninety -first general 293
310310 assembly, second regular session and section 137.073 as 294
311311 modified by house committee substitute for senate substitute 295
312312 for senate committee substitute for senate bill no. 960, 296
313313 ninety-second general assembly, second regular session, in a 297
314314 year of general reassessment. For the purposes of applying 298
315315 the provisions of this subsection, a political subdivision 299
316316 contained within two or more counties where at least one of 300
317317 such counties has opted out and at least one of such 301
318318 counties has not opted out shall calculate a single tax rate 302
319319 as in effect prior to the enactment of house bill no. 1150 303
320320 of the ninety-first general assembly, secon d regular 304
321321 session. A governing body of a city not within a county or 305 SB 294 11
322322 a county that has opted out under the provisions of this 306
323323 subsection may choose to implement the provisions of this 307
324324 section and sections 137.073, 138.060, and 138.100 as 308
325325 enacted by house bill no. 1150 of the ninety -first general 309
326326 assembly, second regular session, and section 137.073 as 310
327327 modified by house committee substitute for senate substitute 311
328328 for senate committee substitute for senate bill no. 960, 312
329329 ninety-second general assembly , second regular session, for 313
330330 the next year of general reassessment, by an affirmative 314
331331 vote of the governing body prior to December thirty -first of 315
332332 any year. 316
333333 [15.] 16. The governing body of any city of the third 317
334334 classification with more than twen ty-six thousand three 318
335335 hundred but fewer than twenty -six thousand seven hundred 319
336336 inhabitants located in any county that has exercised its 320
337337 authority to opt out under subsection [14] 15 of this 321
338338 section may levy separate and differing tax rates for real 322
339339 and personal property only if such city bills and collects 323
340340 its own property taxes or satisfies the entire cost of the 324
341341 billing and collection of such separate and differing tax 325
342342 rates. Such separate and differing rates shall not exceed 326
343343 such city's tax rate ceiling. 327
344344 [16.] 17. Any portion of real property that is 328
345345 available as reserve for strip, surface, or coal mining for 329
346346 minerals for purposes of excavation for future use or sale 330
347347 to others that has not been bonded and permitted under 331
348348 chapter 444 shall be assessed based upon how the real 332
349349 property is currently being used. Any information provided 333
350350 to a county assessor, state tax commission, state agency, or 334
351351 political subdivision responsible for the administration of 335
352352 tax policies shall, in the perf ormance of its duties, make 336
353353 available all books, records, and information requested, 337 SB 294 12
354354 except such books, records, and information as are by law 338
355355 declared confidential in nature, including individually 339
356356 identifiable information regarding a specific taxpaye r or 340
357357 taxpayer's mine property. For purposes of this subsection, 341
358358 "mine property" shall mean all real property that is in use 342
359359 or readily available as a reserve for strip, surface, or 343
360360 coal mining for minerals for purposes of excavation for 344
361361 current or future use or sale to others that has been bonded 345
362362 and permitted under chapter 444. 346
363363