Missouri committee hears bill letting homeowners cap assessments at purchase price

At a public hearing of the Special Committee on Tax Reform, Representative Darren Chapel introduced House Bill 7 80, a voluntary program that would let homeowners limit the assessed value of a property to its most recent purchase price if they opt into the program.

Chapel, a Republican who identified himself as the representative of the 137th District in Greene County, said the measure is aimed at preventing residents — including seniors, veterans and long-time homeowners in gentrifying neighborhoods — from being taxed on unrealized gains. "Property rights in the United States are sacrosanct," Chapel said, arguing that taxing homes on speculative increases can force some families from their homes.

The bill would allow an assessor to rebut an opt-in sale that appears to be less than arm's length by petitioning the board of equalization with evidence that the sale understates market value. It also includes a provision allowing assessors to reassess when a homeowner increases a property's value by more than 50 percent. Chapel repeatedly told the committee the legislation…