EDITOR:
Missouri’s property tax system works best when the assessments are accurate, the tax base is wide, and the rates are low. That combination will help Missouri grow our economy for everyone while properly funding the necessary functions of local government. However, this is not the option being put before voters throughout Missouri in April.
The proposal before voters in 75 counties, including Platte, would prohibit any property tax increase resulting from reassessment from exceeding five percent.
At the Show-Me Institute, we support low taxes, and I am well-aware of how tempting this will be to voters. But using market valuations in reassessment to set tax levels is a good system and, yes, your property value might increase by more than five percent in a two-year period.
While our property tax system needs reforms, severely limiting tax increases from reassessments will make Missouri more dependent on other taxes that hurt our economy far more than property taxes do. It will also increase the dependency of many rural school districts on state aid and reduce the ability of rural school districts to fund themselves.
Again, I’m aware that many voters may view that as a benefit, but it’s anything but.
We need property tax reform in Missouri, but this five-percent limitation is too severe. The property tax proposals before voters will make Missouri’s overall tax system worse, not better, for most Missourians. I hope voters will look past the easy appeal of a tax limit to think about the long-term harms.
--David Stokes
Director of Municipal Policy
Show-Me Institute
