HOUSE JOINT RESOLUTION NO. 8 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE DAVIDSON. 3411H.01I JOSEPH ENGLER, Chief Clerk
JOINT RESOLUTION Submitting to the qualified voters of Missouri an amendment repealing Sections 4(a), 4(b), 4 (c), 5, 6, 6(a), 6(b), 8, 11(a), 11(b), 11(c), 11(e), 11(g), 12(a), and 22 of Article X of the Constitution of Missouri, and adopting thirteen new sections in lieu thereof relating to taxation of property.
Be it resolved by the House of Representatives, the Senate concurring therein:
That at the next general election to be held in the state of Missouri, on Tuesday next 2 following the first Monday in November, 2026, or at a special election to be called by the 3 governor for that purpose, there is hereby submitted to the qualified voters of this state, for 4 adoption or rejection, the following amendment to Article X of the Constitution of the state of 5 Missouri: Section A. Sections 4(a), 4(b), 4(c), 5, 6, 6(a), 6(b), 8, 11(a), 11(b), 11(c), 11(e), 11 2 (g), 12(a), and 22, Article X, Constitution of Missouri, are repealed and thirteen new sections 3 adopted in lieu thereof, to be known as Sections 4(a), 4(b), 4(e), 4(f), 5, 6, 6(a), 8, 11(a), 11 4 (c), 11(g), 12(a), and 22, to read as follows: Section 4(a). [All taxable] 1. Real property shall be the only property classified for 2 property tax purposes [as follows: class 1, real property; class 2, tangible personal property; 3 class 3, intangible personal property] in this state.
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HJR 8 2
4 2. (1) The general assembly, by general law, may [provide for further classification 5 within classes 2 and 3,] classify real property for property tax purposes based solely on the 6 nature and characteristics of the property[, and not]. 7 (2) Real property shall not be classified for property tax purposes based on: 8 (a) The nature, residence, or business of the owner[,]; or 9 (b) The amount owned on such real property. 10 (3) Residential real property shall not be classified for property tax purposes 11 based on the real property's true value in money or market value. 12 3. Nothing in this section shall prevent the taxing of franchises, privileges or incomes, 13 or the levying of excise or motor vehicle license taxes, or any other taxes of the same or 14 different types. Section 4(b). 1. Real property [in classes 1 and 2 and subclasses of those classes,] 2 shall be [assessed] categorized for property tax purposes [at its value or such percentage of 3 its value as may be fixed] as provided in this article and as provided by general law for 4 each class [and for each subclass. Property in class 3 and its subclasses shall be taxed only to 5 the extent authorized and at the rate fixed by law for each class and subclass, and the tax shall 6 be based on the annual yield and shall not exceed eight percent thereof]. 7 2. Real property [in class 1] shall be [subclassed] classified in the following 8 classifications: 9 (1) Residential real property; 10 (2) Agricultural and horticultural real property; and 11 (3) Utility, industrial, commercial, railroad, and all other real property not included in 12 [subclasses (1) and (2) of class 1] residential real property or agricultural and 13 horticultural real property under this subsection. 14 3. (1) Real property in [the subclasses of class 1] all classifications may be defined 15 by law[, however subclasses (1), (2), and (3) shall not]. 16 (2) No classification of real property shall be further divided[, provided, land in 17 subclass (2)]. 18 (3) Agricultural and horticultural property may by general law be [assessed] 19 categorized for property tax purposes on its productive capability. [The same percentage of 20 value shall be applied to all properties within any subclass. No classes or subclass shall have 21 a percentage of its true value in money in excess of thirty-three and one-third percent.] 22 4. The general assembly shall, by general law, provide for the taxation of real 23 property under this article. Section 4(e). 1. Beginning January first of the second calendar year following 2 the adoption of this section, no political subdivision of this state shall levy or collect a 3 property tax on tangible or intangible personal property. HJR 8 3
4 2. (1) The general assembly may, by general law, replace all or some portion of 5 revenues lost by a political subdivision because of the prohibition on the levy or 6 collection of a property tax on tangible personal property under subsection 1 of this 7 section if such political subdivision levied or collected a property tax on tangible 8 personal property before January first of the second calendar year following the 9 adoption of this section. 10 (2) Such general law shall include, but not be limited to, the following provisions: 11 (a) Authorization for a one-time adjustment to the levy of a property tax on the 12 real property in each political subdivision that levied or collected a property tax on 13 tangible personal property before January first of the second calendar year following 14 the adoption of this section to replace lost revenues as provided in subdivision (1) of this 15 subsection; 16 (b) Processes and procedures for assessors to notify taxpayers of the elimination 17 of the personal property tax and the taxation of real property established under this 18 article; and 19 (c) Processes and procedures for the collection of real property taxes levied 20 under this article. Section 4(f). 1. As provided in Article X, Sections 4(a) and 4(b) of the 2 Constitution of Missouri, residential real property, agricultural and horticultural real 3 property, and utility, industrial, commercial, railroad, and all other real property not 4 included in residential real property or agricultural and horticultural real property 5 shall be categorized for property tax purposes as provided in this section. 6 2. (1) Each parcel of residential real property shall be categorized into one of ten 7 tiers based on the parcel's square footage and age to determine the parcel's real 8 property tax tier factor. 9 (2) The real property tax tier factor shall be established to replace the assessed 10 valuation of residential real property for property taxation purposes under this section 11 beginning on January first of the second calendar year following the adoption of this 12 section. 13 (3) Establishment of the tiers shall be subject to the following: 14 (a) The ten tiers shall be established by the state tax commission; 15 (b) Each tier shall be designed to allow each parcel to be assigned to the tier to 16 which other parcels in this state with similar square footage and age are assigned; 17 (c) Such tiers may take into account other relevant characteristics of each parcel 18 of such real property as assessed as of January first of the calendar year immediately 19 preceding the calendar year in which the new method of real property taxation was 20 adopted under Article X, Section 4(b) of the Constitution of Missouri; HJR 8 4
21 (d) Such tiers shall be promulgated by regulation and published by the state tax 22 commission before January first of the second calendar year following the adoption of 23 this section and before January first every four years thereafter; and 24 (e) Such tiers shall be submitted to the general assembly for consideration in the 25 regular session of the general assembly immediately following the promulgation of such 26 regulation, subject to the following: 27 a. If the general assembly does not adopt a concurrent resolution rejecting a 28 regulation promulgated under this subdivision within the first sixty calendar days of the 29 regular session immediately following the promulgation of such regulation, the tiers 30 contained in such regulation shall become effective on January first of the immediately 31 following calendar year and remain effective until new tiers are established under this 32 subdivision; and 33 b. If the general assembly rejects a regulation promulgated under this 34 subdivision, the state tax commission shall continue to use tiers established in the most 35 recent preceding regulation promulgated under this subsection. 36 3. (1) The state tax commission shall establish a real property tax tier factor for 37 each tier for purposes of real property taxation under this article. 38 (2) Subsequent tier factors shall be established and adjusted as provided in this 39 section. 40 4. Agricultural and horticultural real property shall be graded and categorized 41 based on the parcel's productive capability as provided by general law. 42 5. Utility, industrial, commercial, railroad, and all other real property not 43 included in residential real property or agricultural and horticultural real property 44 shall be assessed in the same manner as such real property is assessed as provided under 45 state law. 46 6. (1) Each assessor shall categorize each parcel of residential real property 47 subject to the assessor's jurisdiction in the relevant tier established by the state tax 48 commission. 49 (2) A taxpayer may appeal the assessor's categorization of the taxpayer's 50 residential real property within a particular tier by means of the procedures available 51 under state law for appeals of the assessed valuation of residential real property in effect 52 before the effective date of this section. 53 (3) The assessor shall make information relating to the categorization of 54 residential real property available to the public at all times so that any taxpayer can 55 view the different tiers and categorizations of parcels of residential real property and 56 the residential real property tax tier factor for each tier. HJR 8 5
57 7. (1) Each political subdivision levying a real property tax rate as of December 58 thirty-first of the calendar year immediately preceding January first of the second 59 calendar year following the adoption of this section shall levy tax rates for the political 60 subdivision's purposes on each parcel of residential real property based on such parcel's 61 real property tax tier factor. 62 (2) For the initial levy of real property tax rates following the adoption of this 63 section, subject to the adjustments described in subdivision (3) of this subsection, the tax 64 rate levied on each real property tax tier for each purpose for which the political 65 subdivision levied an equivalent tax rate before the effective date of this section shall be 66 the rate necessary to produce substantially the same amount of real property tax 67 revenue as was due on all parcels of residential real property within each parcel's tier 68 from all tax rates levied by the political subdivision based on the most recent assessment 69 conducted before the effective date of this section. 70 (3) (a) Each political subdivision may make a one-time adjustment to the initial 71 levy of real property tax rates following the adoption of this section to replace revenues 72 lost because of the prohibition on the levy or collection of a property tax on tangible or 73 intangible personal property under Article X, Section 4(e) of the Constitution of 74 Missouri. 75 (b) If a political subdivision makes a one-time adjustment under paragraph (a) 76 of this subdivision, such political subdivision shall decrease the initial levy of real 77 property tax rates levied under subdivision (2) of this subsection to account for 78 unprecedented increases in the assessed valuation of personal property caused in whole 79 or in part by the COVID-19 pandemic in such political subdivision, as determined by 80 the state tax commission. 81 (4) (a) As used in this subdivision, "additional tax abatement revenues" means 82 revenues derived from higher tax levies on real property inside a political subdivision 83 that has adopted any tax abatement or similar economic incentive authorized under 84 state law but outside an area subject to tax abatement within the political subdivision. 85 (b) Each political subdivision that adopts or has adopted any tax abatement or 86 similar economic incentive authorized under state law shall decrease the levy of real 87 property tax rates levied under this article to reduce the amount of tax revenues such 88 political subdivision received from additional tax abatement revenues. 89 8. (1) As used in this subsection, "over-the-quadrennium" means the November 90 of the calendar year immediately preceding January first of the year in which an 91 adjustment occurs under this subsection and the forty-seven months preceding such 92 November. HJR 8 6
93 (2) The state tax commission shall promulgate rules establishing adjustments to 94 the tiers and the residential real property tax tier factors established under this section, 95 subject to the following: 96 (a) Such residential real property tax tier factor adjustment shall be a 97 quadrennial adjustment based on increases in the general price level, as such term is 98 defined in Article X, Section 17 of the Constitution of Missouri, based on the general 99 price level report released in December of the year immediately preceding January first 100 of the year in which an adjustment occurs under this subsection; 101 (b) If such general price level report indicates that the over-the-quadrennium 102 percent change is greater than zero but less than five percent, the residential real 103 property tax tier factors shall be increased by the same percentage as such over-the- 104 quadrennium percent change; 105 (c) If such general price level report indicates that the over-the-quadrennium 106 percent change is less than or equal to zero, the residential real property tax tier factors 107 shall not be adjusted; and 108 (d) If such general price level report indicates that the over-the-quadrennium 109 percent change is greater than or equal to five percent, the residential real property tax 110 tier factors shall be increased by five percent. Section 5. All railroad corporations in this state, or doing business therein, shall be 2 subject to taxation for state, county, school, municipal and other purposes, on the real [and 3 personal] property owned or used by them, and on their gross earnings, their net earnings, 4 their franchises and their capital stock. Section 6. 1. All real property[, real and personal,] of the state, counties and other 2 political subdivisions, and nonprofit cemeteries, and all real property used as a homestead as 3 defined by law of any citizen of this state who is a former prisoner of war, as defined by law, 4 and who has a total service-connected disability, shall be exempt from taxation[; all personal 5 property held as industrial inventories, including raw materials, work in progress and finished 6 work on hand, by manufacturers and refiners, and all personal property held as goods, wares, 7 merchandise, stock in trade or inventory for resale by distributors, wholesalers, or retail 8 merchants or establishments shall be exempt from taxation; and]. 9 2. All real property[, real and personal,] not held for private or corporate profit and 10 used exclusively for religious worship, for schools and colleges, for purposes purely 11 charitable, for agricultural and horticultural societies, or for veterans' organizations may be 12 exempted from taxation by general law. [In addition to the above, household goods, furniture, 13 wearing apparel and articles of personal use and adornment owned and used by a person in his 14 home or dwelling place may be exempt from taxation by general law but any such law may 15 provide for approximate restitution to the respective political subdivisions of revenues lost by HJR 8 7
16 reason of the exemption. All laws exempting from taxation property other than the property 17 enumerated in this article, shall be void. The provisions of this section exempting certain 18 personal property of manufacturers, refiners, distributors, wholesalers, and retail merchants 19 and establishments from taxation shall become effective, unless otherwise provided by law, in 20 each county on January 1 of the year in which that county completes its first general 21 reassessment as defined by law. 22 2. All revenues lost because of the exemption of certain personal property of 23 manufacturers, refiners, distributors, wholesalers, and retail merchants and establishments 24 shall be replaced to each taxing authority within a county from a countywide tax hereby 25 imposed on all property in subclass 3 of class 1 in each county. For the year in which the 26 exemption becomes effective, the county clerk shall calculate the total revenue lost by all 27 taxing authorities in the county and extend upon all property in subclass 3 of class 1 within 28 the county, a tax at the rate necessary to produce that amount. The rate of tax levied in each 29 county according to this subsection shall not be increased above the rate first imposed and 30 will stand levied at that rate unless later reduced according to the provisions of subsection 3. 31 The county collector shall disburse the proceeds according to the revenue lost by each taxing 32 authority because of the exemption of such property in that county. Restitution of the 33 revenues lost by any taxing district contained in more than one county shall be from the 34 several counties according to the revenue lost because of the exemption of property in each 35 county. Each year after the first year the replacement tax is imposed, the amount distributed 36 to each taxing authority in a county shall be increased or decreased by an amount equal to the 37 amount resulting from the change in that district's total assessed value of property in subclass 38 3 of class 1 at the countywide replacement tax rate. In order to implement the provisions of 39 this subsection, the limits set in section 11(b) of this article may be exceeded, without voter 40 approval, if necessary to allow each county listed in section 11(b) to comply with this 41 subsection. 42 3. Any increase in the tax rate imposed pursuant to subsection 2 of this section shall 43 be decreased if such decrease