The bill requires the state auditor to review proposed tax rates of local taxing authorities.
This website brought to you in part by the following sponsor:
Find out how to advertise here - Email us! [email protected]
A bill that would give the state the authority to prevent taxing entities from levying property tax rates in excess of that allowed by state law received preliminary approval from the Missouri House of Representatives this week.
The measure, House Bill 2011 is sponsored by Rep. Francis Overschmidt (D-Union) and House Speaker Steve Gaw (D-Moberly). The bill requires the state auditor to review proposed tax rates of local taxing authorities. If the auditor believes the rate submitted does not comply with state law, the auditor then submits a recalculated rate. The authority then must submit documentation either supporting or denying the recalculated rate.
If the taxing entity rejects the auditor’s recalculated rate and does not submit documentation, the matter can be referred to the state attorney general, who can take action to prevent it from levying the rate believed to be in violation. More than 60 local taxing authorities are believed to be taxing incorrectly.
The bill also requires taxing authorities to express their proposed tax rate to the nearest one-one hundredth of a cent. Currently, local taxing entities are allowed to round to the nearest cent, allowing them to effectively charge more that they are allowed by law.
The property tax reform measure is designed to open a line of communication between the state auditor and county assessors, and as a result, give taxpayers a form of tax relief.
Representatives approved House Bill 2011 by a voice vote. It faces third reading and a roll call vote before heading to the Senate for debate.