JEFFERSON CITY, Mo. – One Missouri lawmaker has renewed a push to decrease the state’s personal property tax assessment rate.
State Sen. Bill Eigel (R-District 23) recently introduced SB 8, which proposes the concept of annually reducing Missouri’s assessment percentage of personal property taxes over the next half-century.
According to the bill, “a political subdivision shall annually reduce the percentage of true value in money at which personal property is assessed pursuant to this subsection such that the amount by which the revenue generated by taxes levied on such personal property is substantially equal to one hundred percent of the growth in revenue generated by real property assessment growth.”
Missouri’s current assessment rate factored into personal property costs is 33%, a rate which would decrease yearly through 2073 through the bill. The rate plays an essential in funding local schools, libraries and fire districts.
Sen. Eigel has sought some resolve to Missouri’s personal property tax situation through legislation since 2021. His latest effort comes as many Missourians deal with the impact of higher personal property tax bills, which spiked around 20% on average last year.
Taking to Twitter last year to discuss the issue, Eigel says “29 other states have already eliminated personal property tax on vehicles. … Of the 21 states that still have it, Missouri has the 3rd highest rate of PPT anywhere in the country. … Our working and middle class households deserve a break.”
The Missouri Senate Economic Development and Tax Policy Committee held a hearing over Eigel’s bill Tuesday, learning of strong support and opposition on the issue within both political parties.
Skip Stephens, fire chief of the Cottleville Fire Protection District in Eigel’s House jurisdiction, is among the bill’s critics. He tells the Columbia Missourian the bill could negatively affect the department’s ability to keep up with inflation and address needs.
Per the Missourian, Eigel contends that reducing the assessment rates and finding ways to fund services currently supported by personal property taxes are separate issues worth considering.
It’s unclear how much traction SB 8 might get in upcoming weeks, though it has already had multiple readings, per Missouri Senate records.