Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Personal Property Tax topic
No spam. Unsubscribe anytime.
Missouri committee hears bill to tie personal property increases to CPI or Hancock limits
Summary
A House special committee reviewed House Bill 1766, which would cap increases in personal property assessed value by tying them to CPI or the Hancock limit (whichever is lower); sponsors said the change would curb a COVID-era valuation "windfall," while assessors warned it could change how levies and Hancock rollbacks apply locally.
A Missouri House special committee on property tax reform heard testimony on House Bill 1766 on Jan. 22, which would change how personal property valuations are treated when local taxing entities set levies.
The bill s explained by the sponsor would treat aggregate changes in personal property the same way the law now treats real estate: valuation increases would be limited by CPI or the Hancock provision, whichever produces the lower increase. "All this bill 17 66 does is just tie them to CPI or Hancock, whichever is lower," the sponsor said, saying the change is meant to make valuation treatment "more fair for the taxpayer." The sponsor cited statewide personal-property assessments rising from about $1.5 billion to about $1.9 billion, and said vehicle valuations alone account for an approximate $350 million per year increase that has become built in to local rolls.
Why it matters: Sponsors said the 2013 statutory change that treated increases in aggregate personal property valuation as "new construction" effectively exempted those increases from rollback calculations and produced a multi-year surplus for political subdivisions. Ray McCarty, president of Associated Industries in Missouri, testified the bill would restore the pre-2013 practice and prevent further "windfalls" tied to pandemic-era price spikes.
Assessors nd mechanics: Boone County Assessor Kenny Moore, speaking for the Missouri State Assessors Association, described how total assessed value is the basis for levy-setting and cautioned the committee that including those personal-property increases in levy calculations could make Hancock rollbacks more likely to apply to entire classes of levies. He also noted a recently enacted law limiting upward adjustments for vehicles under $50,000 will come into effect and could stabilize some valuations.
Local fiscal concerns: Several lawmakers pressed the sponsor on possible local revenue impacts and timing, noting small rural counties and service districts (fire, ambulance, volunteer organizations) rely heavily on personal-property revenue. The sponsor and supporters said the policy aims to return a portion of surplus collections to taxpayers and to slow built-in valuation growth, but acknowledged impacts vary county by county.
Public testimony and next steps: Supporters included business groups and a state public advocate; assessors testified as informational witnesses and urged caution about shifting burdens to homeowners and local services. The committee took no votes on HB1766 and moved on to other bills on the agenda; the hearing recessed for the governor's State of the State and later adjourned without final action on HB1766.
