Governor Blunt Takes Action to End Unfair Local Property Tax Increases for Missouri Homeowners

FROM THE OFFICE OF THE GOVERNOR

July 02, 2008

Contact: Jessica Robinson, 573-751-0290


KIRKSVILLE—Gov. Matt Blunt today signed legislation that will protect Missouri taxpayers from the threat of rising local property taxes.

“Homeownership is a vital part of the American dream. But high property taxes make ownership less affordable,” Gov. Blunt said. “In my State of the State address I called on the General Assembly to take action against excessive property taxes. And they did, in large part thanks to the leadership of Senator Michael Gibbons. Protecting Missourians from the threat of rising local property taxes was one of the most significant achievements of this legislative session and I am very pleased to enact this bill into law.”

“I appreciate the governor’s support as well as the support of all senators and nearly all representatives who joined me to pass this property tax reform package,” Sen. Gibbons said. “It allows us to protect taxpayers by ending tax increases caused by reassessments, closing tax increase loopholes, requiring earlier notice and more information, and expanding tax relief for seniors and the disabled.”

Senate Bill 711, sponsored by Sen. Michael Gibbons will help protect Missouri families from rapidly increasing property taxes. The legislation helps ensure that Missourians are informed of any tax or assessment increase as soon as possible and that they are given more information on how reassessment will affect them. Earlier notifications and more information will give homeowners, small business owners, and farmers more time to appeal their own assessment and better information to discuss tax and spending policy with local officials.

The legislation also requires mandatory levy rollbacks. In 1980, Missourians passed the Hancock Amendment, which provides protections from excessive increases through rollbacks in local property tax levies. This legislation closes a loophole in the law that allows local governments who are imposing a tax below their approved levy to increase their tax rates by more than inflation, this lead to a windfall for some local governments in the previous reassessment.

Gov. Blunt has worked to lower taxes for Missouri families. He inherited a $1.1 billion budget deficit when he took office in 2005 and balanced the budget with three consecutive budget surpluses while cutting taxes for hard-working Missourians. Last year the governor signed legislation ending the cut on Social Security for all Missouri senior citizens. The legislation also provides tax relief for teachers, firefighters, police officers, military personnel, federal employees and railroad workers. Gov. Blunt also enacted a tax cut to protect manufacturing jobs in Missouri. In addition, Gov. Blunt eased the tax burden on Missouri families by signing tax cuts to allow Missourians to deduct the cost of their health insurance premiums.