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Bill would lower reassessment cap from 5% to 3%, sponsor says it protects taxpayers
Summary
Rep. Mark Matheson told the Special Committee on Tax Reform HB 1800 would reduce the allowable reassessment growth from 5% to 3% (CPI or assessed value, whichever is less); an industry witness backed the measure as a 'safe harbor' for taxpayers.
Representative Mark Matheson presented House Bill 1800 to the Special Committee on Tax Reform, saying the bill would change the reassessment ceiling that governs growth in local government new revenue from 5% to 3% CPI (or assessed value, whichever is less). "We're gonna change the number 5 to the number 3," Matheson said at the hearing.
Matheson said the change would have mattered historically: "Currently, that would have come into play 17 times in the last 40 years," he said, arguing the lower cap would better protect taxpayers from automatic increases in taxing districts. Committee members asked technical drafting questions, including a struck phrase at lines 29–30 that sponsor staff called cleanup language from drafting.
Committee members discussed the bill’s relationship to the Hancock Amendment and the mechanics of reassessment cycles. Members and sponsor noted the cap applies during reassessment cycles and that taxing districts rely on reassessments, in part, to respond to inflationary pressures on salaries and operating costs.
Matthew Smith of Associated Industries of Missouri testified in support, calling HB 1800 a "great safe harbor for millions of taxpayers across Missouri." No formal vote was taken; the hearing closed after testimony and committee questioning.
The committee left open technical refinements and said it would consider statutory language, drafting cleanup, and potential fiscal impacts in subsequent work sessions.
