Missouri Property Tax Reform: The Problem with Short-Term Fixes and the Search for Lasting Solutions

Missouri's current push for property tax reform is dominated by short-term relief measures that critics argue fail to address systemic flaws and may worsen inequities. The state's new senior tax freeze, while well-intentioned, risks creating unintended tax breaks for wealthy homeowners and shifting the burden to younger buyers. Lasting solutions require addressing inconsistent property assessments across 114 counties and reforming a system hampered by Missouri's status as a nondisclosure state, where actual sale prices are not publicly recorded. This article examines the core problems and the potential reforms on the table.

What Are the Criticisms of Missouri's Senior Tax Freeze?

Enacted in 2024, the senior tax freeze law was designed to protect older homeowners on fixed incomes from being priced out of their homes by rising property taxes. However, officials like St. Charles County Collector Michelle McBride testify that its application is creating problems. The freeze holds the city levy steady for eligible homeowners, but when applied to high-value properties, it can create significant revenue shortfalls for local governments.

McBride highlighted 115 properties in St. Charles County worth over $1 million that qualified for the freeze, including a $4 million new construction home. The core issue is structural: by freezing taxes for one group, the tax base can be hollowed out, shifting the financial burden to younger, first-time homeowners and those with less expensive properties. As Steve Hobbs of the Missouri Association of Counties explained, "When you create a carve out for one entity, you shift the tax burden to others."

Why Are Property Assessments So Inconsistent in Missouri?

State law requires county assessors to reassess property values every two years, aiming to keep them within 90-100% of market value to fund local services. However, inconsistency is rampant. Some counties have implemented mandated assessment increases of 12-15% without conducting in-person inspections, while others lag behind. This inconsistency is a primary driver of unfair tax bills and potential lawsuits.

A major complicating factor is that Missouri is a nondisclosure state. This means real estate sales prices are kept private when a property changes hands. Assessors are left with incomplete data, making accurate valuations difficult. This problem is especially acute for commercial properties, where sales data is particularly scarce. These hidden distortions in valuation fuel the growing number of appeals and legal challenges from homeowners like Jennifer Phanton, who successfully appealed an incorrect assessment but noted the burden of proof falls entirely on the homeowner.

What Long-Term Reforms Are Being Proposed?

Lawmakers are considering several structural reforms to create a fairer system:

• Classifying Property Tax Rates: This proposal would separate tax rates for residential, commercial, agricultural, and personal property. Supporters argue this could prevent value spikes in one property class from distorting tax calculations for others.
• Certificate of Value Requirement: This reform would require disclosing the sale price at the time of transfer, giving assessors transparent market data. This would mimic reforms in states like New Mexico and directly address the data gaps caused by nondisclosure.
• Expanding the Circuit Breaker Program: Championed by officials like McBride, this program offers targeted relief based on income for low-income seniors and disabled homeowners. Expanding it is seen as a more equitable alternative to broad freezes.

The following table summarizes the potential impact of these key proposals:

Conclusion: A Call for Structural Solutions

As the Missouri House committee drafts legislation, the path forward requires moving beyond politically popular quick fixes. The key takeaways for homeowners are:

• Understand your assessment: You have the right to appeal if you believe your property’s assessed value is incorrect.
• Advocate for equity: Support reforms that provide targeted relief based on need rather than age alone.
• Focus on data-driven solutions: Reforms that increase transparency, like a certificate of value, are critical for long-term fairness.

The pressure for meaningful reform is intense, and the success of any legislative package will depend on its ability to address these foundational issues rather than offering temporary, and potentially counterproductive, relief.