HOUSE BILL NO. 1790 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE MURPHY.
4618H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 137.073, RSMo, and to enact in lieu thereof three new sections relating to tax levies by political subdivisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 137.073, RSMo, is repealed and three new sections enacted in lieu 2 thereof, to be known as sections 115.240, 137.067, and 137.073, to read as follows: 115.240. The election authority for any political subdivision or special district 2 shall label ballot measures relating to taxation that are submitted by such political 3 subdivision or special district to a vote of the people numerically or alphabetically in the 4 order in which they are submitted. No such ballot measure shall be labeled in a 5 descriptive manner aside from its numerical or alphabetical designation. Election 6 authorities may coordinate with each other, or with the secretary of state, to maintain a 7 database or other record and to ensure that the same measure shared on the ballot of 8 multiple election authorities at the same election will have the same numerical or 9 alphabetical assignment. 137.067. Notwithstanding any other provision of law to the contrary, any ballot 2 measure seeking approval to add, change, or modify a tax on real property shall express 3 the effect of the proposed change within the ballot language in terms of the change in 4 real dollars owed per one hundred thousand dollars of a property's market valuation. 137.073. 1. As used in this section, the following terms mean: 2 (1) "General reassessment", changes in value, entered in the assessor's books, of a 3 substantial portion of the parcels of real property within a county resulting wholly or partly
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. HB 1790 2
4 from reappraisal of value or other actions of the assessor or county equalization body or 5 ordered by the state tax commission or any court; 6 (2) "Tax rate", "rate", or "rate of levy", singular or plural, includes the tax rate for 7 each purpose of taxation of property a taxing authority is authorized to levy without a vote 8 and any tax rate authorized by election, including bond interest and sinking fund; 9 (3) "Tax rate ceiling", a tax rate as revised by the taxing authority to comply with the 10 provisions of this section or when a court has determined the tax rate; except that, other 11 provisions of law to the contrary notwithstanding, a school district may levy the operating 12 levy for school purposes required for the current year pursuant to subsection 2 of section 13 163.021, less all adjustments required pursuant to Article X, Section 22 of the Missouri 14 Constitution, if such tax rate does not exceed the highest tax rate in effect subsequent to the 15 1980 tax year. This is the maximum tax rate that may be levied, unless a higher tax rate 16 ceiling is approved by voters of the political subdivision as provided in this section; 17 (4) "Tax revenue", when referring to the previous year, means the actual receipts from 18 ad valorem levies on all classes of property, including state-assessed property, in the 19 immediately preceding fiscal year of the political subdivision, plus an allowance for taxes 20 billed but not collected in the fiscal year and plus an additional allowance for the revenue 21 which would have been collected from property which was annexed by such political 22 subdivision but which was not previously used in determining tax revenue pursuant to this 23 section. The term "tax revenue" shall not include any receipts from ad valorem levies on any 24 property of a railroad corporation or a public utility, as these terms are defined in section 25 386.020, which were assessed by the assessor of a county or city in the previous year but are 26 assessed by the state tax commission in the current year. All school districts and those 27 counties levying sales taxes pursuant to chapter 67 shall include in the calculation of tax 28 revenue an amount equivalent to that by which they reduced property tax levies as a result of 29 sales tax pursuant to section 67.505 and section 164.013 or as excess home dock city or 30 county fees as provided in [subsection 4 of] section 313.820 in the immediately preceding 31 fiscal year but not including any amount calculated to adjust for prior years. For purposes of 32 political subdivisions which were authorized to levy a tax in the prior year but which did not 33 levy such tax or levied a reduced rate, the term "tax revenue", as used in relation to the 34 revision of tax levies mandated by law, shall mean the revenues equal to the amount that 35 would have been available if the voluntary rate reduction had not been made. 36 2. Whenever changes in assessed valuation are entered in the assessor's books for any 37 personal property, in the aggregate, or for any subclass of real property as such subclasses are 38 established in Section 4(b) of Article X of the Missouri Constitution and defined in section 39 137.016, the county clerk in all counties and the assessor of St. Louis City shall notify each 40 political subdivision wholly or partially within the county or St. Louis City of the change in HB 1790 3
41 valuation of each subclass of real property, individually, and personal property, in the 42 aggregate, exclusive of new construction and improvements. All political subdivisions shall 43 immediately revise the applicable rates of levy for each purpose for each subclass of real 44 property, individually, and personal property, in the aggregate, for which taxes are levied to 45 the extent necessary to produce from all taxable property, exclusive of new construction and 46 improvements, substantially the same amount of tax revenue as was produced in the previous 47 year for each subclass of real property, individually, and personal property, in the aggregate, 48 except that the rate shall not exceed the greater of the most recent voter-approved rate or the 49 most recent voter-approved rate as adjusted under subdivision (2) of subsection 5 of this 50 section. Any political subdivision that has received approval from voters for a tax increase 51 after August 27, 2008, may levy a rate to collect substantially the same amount of tax revenue 52 as the amount of revenue that would have been derived by applying the voter-approved 53 increased tax rate ceiling to the total assessed valuation of the political subdivision as most 54 recently certified by the city or county clerk on or before the date of the election in which 55 such increase is approved, increased by the percentage increase in the consumer price index, 56 as provided by law, except that the rate shall not exceed the greater of the most recent voter- 57 approved rate or the most recent voter-approved rate as adjusted under subdivision (2) of 58 subsection 5 of this section. Such tax revenue shall not include any receipts from ad valorem 59 levies on any real property which was assessed by the assessor of a county or city in such 60 previous year but is assessed by the assessor of a county or city in the current year in a 61 different subclass of real property. Where the taxing authority is a school district for the 62 purposes of revising the applicable rates of levy for each subclass of real property, the tax 63 revenues from state-assessed railroad and utility property shall be apportioned and attributed 64 to each subclass of real property based on the percentage of the total assessed valuation of the 65 county that each subclass of real property represents in the current taxable year. As provided 66 in Section 22 of Article X of the constitution, a political subdivision may also revise each levy 67 to allow for inflationary assessment growth occurring within the political subdivision. The 68 inflationary growth factor for any such subclass of real property or personal property shall be 69 limited to the actual assessment growth in such subclass or class, exclusive of new 70 construction and improvements, and exclusive of the assessed value on any real property 71 which was assessed by the assessor of a county or city in the current year in a different 72 subclass of real property, but not to exceed the consumer price index or five percent, 73 whichever is lower. Should the tax revenue of a political subdivision from the various tax 74 rates determined in this subsection be different than the tax revenue that would have been 75 determined from a single tax rate as calculated pursuant to the method of calculation in this 76 subsection prior to January 1, 2003, then the political subdivision shall revise the tax rates of 77 those subclasses of real property, individually, and/or personal property, in the aggregate, in HB 1790 4
78 which there is a tax rate reduction, pursuant to the provisions of this subsection. Such 79 revision shall yield an amount equal to such difference and shall be apportioned among such 80 subclasses of real property, individually, and/or personal property, in the aggregate, based on 81 the relative assessed valuation of the class or subclasses of property experiencing a tax rate 82 reduction. Such revision in the tax rates of each class or subclass shall be made by computing 83 the percentage of current year adjusted assessed valuation of each class or subclass with a tax 84 rate reduction to the total current year adjusted assessed valuation of the class or subclasses 85 with a tax rate reduction, multiplying the resulting percentages by the revenue difference 86 between the single rate calculation and the calculations pursuant to this subsection and 87 dividing by the respective adjusted current year assessed valuation of each class or subclass to 88 determine the adjustment to the rate to be levied upon each class or subclass of property. The 89 adjustment computed herein shall be multiplied by one hundred, rounded to four decimals in 90 the manner provided in this subsection, and added to the initial rate computed for each class 91 or subclass of property. For school districts that levy separate tax rates on each subclass of 92 real property and personal property in the aggregate, if voters approved a ballot before 93 January 1, 2011, that presented separate stated tax rates to be applied to the different 94 subclasses of real property and personal property in the aggregate, or increases the separate 95 rates that may be levied on the different subclasses of real property and personal property in 96 the aggregate by different amounts, the tax rate that shall be used for the single tax rate 97 calculation shall be a blended rate, calculated in the manner provided under subdivision (1) of 98 subsection 6 of this section. Notwithstanding any provision of this subsection to the contrary, 99 no revision to the rate of levy for personal property shall cause such levy to increase over the 100 levy for personal property from the prior year. 101 3. (1) Where the taxing authority is a school district, it shall be required to revise the 102 rates of levy to the extent necessary to produce from all taxable property, including state- 103 assessed railroad and utility property, which shall be separately estimated in addition to other 104 data required in complying with section 164.011, substantially the amount of tax revenue 105 permitted in this section. In the year following tax rate reduction, the tax rate ceiling may be 106 adjusted to offset such district's reduction in the apportionment of state school moneys due to 107 its reduced tax rate. However, in the event any school district, in calculating a tax rate ceiling 108 pursuant to this section, requiring the estimating of effects of state-assessed railroad and 109 utility valuation or loss of state aid, discovers that the estimates used result in receipt of 110 excess revenues, which would have required a lower rate if the actual information had been 111 known, the school district shall reduce the tax rate ceiling in the following year to compensate 112 for the excess receipts, and the recalculated rate shall become the tax rate ceiling for purposes 113 of this section. HB 1790 5
114 (2) For any political subdivision which experiences a reduction in the amount of 115 assessed valuation relating to a prior year, due to decisions of the state tax commission or a 116 court pursuant to sections 138.430 to 138.433, or due to clerical errors or corrections in the 117 calculation or recordation of any assessed valuation: 118 (a) Such political subdivision may revise the tax rate ceiling for each purpose it levies 119 taxes to compensate for the reduction in assessed value occurring after the political 120 subdivision calculated the tax rate ceiling for the particular subclass of real property or for 121 personal property, in the aggregate, in a prior year. Such revision by the political subdivision 122 shall be made at the time of the next calculation of the tax rate for the particular subclass of 123 real property or for personal property, in the aggregate, after the reduction in assessed 124 valuation has been determined and shall be calculated in a manner that results in the revised 125 tax rate ceiling being the same as it would have been had the corrected or finalized assessment 126 been available at the time of the prior calculation; 127 (b) In addition, for up to three years following the determination of the reduction in 128 assessed valuation as a result of circumstances defined in this subdivision, such political 129 subdivision may levy a tax rate for each purpose it levies taxes above the revised tax rate 130 ceiling provided in paragraph (a) of this subdivision to recoup any revenues it was entitled to 131 receive had the corrected or finalized assessment been available at the time of the prior 132 calculation. 133 4. (1) In order to implement the provisions of this section and Section 22 of Article X 134 of the Constitution of Missouri, the term improvements shall apply to both real and personal 135 property. In order to determine the value of new construction and improvements, each county 136 assessor shall maintain a record of real property valuations in such a manner as to identify 137 each year the increase in valuation for each political subdivision in the county as a result of 138 new construction and improvements. The value of new construction and improvements shall 139 include the additional assessed value of all improvements or additions to real property which 140 were begun after and were not part of the prior year's assessment, except that the additional 141 assessed value of all improvements or additions to real property which had been totally or 142 partially exempt from ad valorem taxes pursuant to sections 99.800 to 99.865, sections 143 135.200 to 135.255, and section 353.110 shall be included in the value of new construction 144 and improvements when the property becomes totally or partially subject to assessment and 145 payment of all ad valorem taxes. The aggregate increase in valuation of personal property for 146 the current year over that of the previous year is the equivalent of the new construction and 147 improvements factor for personal property. Notwithstanding any opt-out implemented 148 pursuant to subsection 14 of section 137.115, the assessor shall certify the amount of new 149 construction and improvements and the amount of assessed value on any real property which 150 was assessed by the assessor of a county or city in such previous year but is assessed by the HB 1790 6
151 assessor of a county or city in the current year in a different subclass of real property 152 separately for each of the three subclasses of real property for each political subdivision to the 153 county clerk in order that political subdivisions shall have this information for the purpose of 154 calculating tax rates pursuant to this section and Section 22, Article X, Constitution of 155 Missouri. In addition, the state tax commission shall certify each year to each county clerk 156 the increase in the general price level as measured by the Consumer Price Index for All Urban 157 Consumers for the United States, or its successor publications, as defined and officially 158 reported by the United States Department of Labor, or its successor agency. The state tax 159 commission shall certify the increase in such index on the latest twelve-month basis available 160 on February first of each year over the immediately preceding prior twelve-month period in 161 order that political subdivisions shall have this information available in setting their tax rates 162 according to law and Section 22 of Article X of the Constitution of Missouri. For purposes of 163 implementing the provisions of this section and Section 22 of Article X of the Missouri 164 Constitution, the term "property" means all taxable property, including state-assessed 165 property. 166 (2) Each political subdivision required to revise rates of levy pursuant to this section 167 or Section 22 of Article X of the Constitution of Missouri shall calculate each tax rate it is 168 authorized to levy and, in establishing each tax rate, shall consider each provision for tax rate 169 revision provided in this section and Section 22 of Article X of the Constitution of Missouri, 170 separately and without regard to annual tax rate reductions provided in section 67.505 and 171 section 164.013. Each political subdivision shall set each tax rate it is authorized to levy 172 using the calculation that produces the lowest tax rate ceiling. It is further the intent of the 173 general assembly, pursuant to the authority of Section 10(c) of Article X of the Constitution 174 of Missouri, that the provisions of such section be applicable to tax rate revisions mandated 175 pursuant to Section 22 of Article X of the Constitution of Missouri as to reestablishing tax 176 rates as revised in subsequent years, enforcement provisions, and other provisions not in 177 conflict with Section 22 of Article X of the Constitution of Missouri. Annual tax rate 178 reductions provided in section 67.505 and section 164.013 shall be applied to the tax rate as 179 established pursuant to this section and Section 22 of Article X of the Constitution of 180 Missouri, unless otherwise provided by law. 181 5. (1) In all political subdivisions, the tax rate ceiling established pursuant to this 182 section shall not be increased unless approved by a vote of the people. Approval of the higher 183 tax rate shall be by at least a majority of votes cast. When a proposed higher tax rate requires 184 approval by more than