Reduces the assessment percentage for residential real property
SB 87 revises Missouri’s property tax assessment law, centered on section 137.115, by changing how real property is assessed and by updating several related assessment and collection rules. The bill lowers the assessment percentage for residential real property in subclass (1) from 19% to 17% over time, beginning in tax years starting January 1, 2026, with the reduction phased in by one-fourth of one percent every two years until 2040. It leaves subclass (2) and subclass (3) assessment percentages unchanged and continues existing rules for personal property, manufactured homes, historic vehicles, farm property, and certain airport possessory interests.
The bill also preserves and clarifies a number of procedural requirements for assessors and taxpayers. It requires assessors to prepare two-year assessment maintenance plans, sets approval and dispute-resolution procedures involving county governing bodies, the state tax commission, and the administrative hearing commission, and strengthens taxpayer protections in some valuation disputes by requiring clear, convincing, and cogent evidence when computer-assisted valuations are challenged in certain jurisdictions. It also retains the rule that a physical inspection is required before a residential parcel’s assessed value can increase by more than 15% since the last assessment, and it specifies notice and interior-inspection rights for property owners.
In addition, SB 87 updates tax administration details such as allowing assessors to mail personal property forms, permitting county and city collectors to accept credit card and electronic payments subject to fee limits, and preserving local opt-out authority for certain counties and cities from related property tax provisions. It also includes special treatment for manufactured homes, mining reserve property, and certain enterprise-zone equipment, while maintaining the use of NADA guide values for motor vehicles.
The general sentiment reflected by the bill’s caption and structure is taxpayer-relief oriented, especially for homeowners, because the core policy change is a gradual reduction in the assessment rate for residential real property. Even without recorded committee debate or votes, the bill appears designed to moderate property tax growth and provide more predictable assessment practices, while still preserving assessor authority and state oversight mechanisms.
The main points of potential contention are likely to be the revenue impact on local governments and school districts, the phased reduction in residential assessment rates, and the administrative burden of reassessment and dispute procedures. Assessors and taxing jurisdictions may be concerned about reduced property tax base growth, while property owners and taxpayer advocates would likely support the lower assessment percentage and the inspection and appeal safeguards. The bill’s detailed rules on valuation methods, local opt-outs, and special property classifications could also draw scrutiny from counties, cities, and appraisal officials.
SB 87 would amend Missouri’s property tax assessment statute, section 137.115, by lowering the assessment percentage for residential real property over time and by preserving a broad framework governing how assessors value real and personal property. The bill affects assessors, county governing bodies, the State Tax Commission, county collectors, property owners, and local taxing jurisdictions, and it would influence the amount of taxable assessed value used to calculate property taxes, especially for homeowners. It also preserves existing statutory treatment for manufactured homes, motor vehicles, agricultural property, enterprise-zone equipment, and certain airport-related possessory interests, while adding or clarifying procedures for assessment plans, inspections, appeals, and payment methods.
The bill’s overall tone is pro-taxpayer and pro-homeowner, with the central policy goal of reducing the assessment percentage on residential real property. Because the text and caption focus on lowering residential assessments and adding procedural protections, the likely public and legislative sentiment is supportive among taxpayers and cautious among local taxing authorities. No committee transcript or vote record was provided, so there is no direct evidence of floor or committee debate, but the bill’s structure suggests a reform intended to ease property tax burdens while maintaining assessment administration.
The likely areas of contention are the fiscal effects on counties, cities, school districts, and other local taxing entities that rely on assessed property values, as well as the fairness of reducing residential assessments while leaving other subclasses unchanged. Assessors may also object to the added procedural requirements for physical inspections, valuation proof in computer-assisted assessments, and assessment maintenance plan approvals. Property owners and taxpayer advocates would likely support those safeguards, while local governments may be concerned about reduced revenues, implementation complexity, and the bill’s long phase-in schedule for the residential rate reduction.