The much-publicized stadium incentive bill passed by the Missouri State Legislature at a special session in June includes a provision with large implications for school, fire, and other local taxing districts.
The law, known as SB3, would allow 74 counties in Missouri, including Nodaway and its surrounding counties, to limit property value increases to 5% per year. 22 other counties, mainly in the southwest, would have the option to freeze their property values altogether. The remaining counties would see no effect at all.
The caps have implications for schools which rely on local property tax dollars for the bulk of their funding.
“[For] districts capped at 0% -- it’s going to be tough for those districts to see any type of additional revenue,” said Dr. Robert Hedgecorth, the Assistant Superintendent for Business and Operations at the St. Joseph School District.
“For us [the cap] would be 5% in Buchanon County, so that would limit any additional revenue we would see in our district,” he said.
Hedgecorth noted “many folks believe it is unconstitutional to apply a tax differently across the state in that type of fashion.”
Now, a group of six schools districts, a fire district and number of property owners have filed a lawsuit claiming just that.
The caps were added to SB3 to appease fiscal conservatives who were opposed to the stadium incentive package. They considered it a form of tax relief for residents.
Hedgecorth recognized property tax relief do have a place. Missouri has an existing program for senior citizens.
“Someone over 62 can file to have the property tax on their homestead, their main property, frozen. And while [that measure] did hit the schools, we understand it makes sense for folks on a fixed income. But SB3 applies to everybody.”
If the law survives the latest legal action, voters in a given county would have to approve the caps by a direct vote.
