{"id":8859,"date":"2026-03-05T12:22:10","date_gmt":"2026-03-05T18:22:10","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/03\/05\/missouri-house-moves-to-cut-minimum-school-levy-in-property-tax-overhaul\/"},"modified":"2026-03-05T12:22:10","modified_gmt":"2026-03-05T18:22:10","slug":"missouri-house-moves-to-cut-minimum-school-levy-in-property-tax-overhaul","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/03\/05\/missouri-house-moves-to-cut-minimum-school-levy-in-property-tax-overhaul\/","title":{"rendered":"Missouri House moves to cut minimum school levy in property tax overhaul"},"content":{"rendered":"
\"\"
\n

State Rep. Tim Taylor, a Republican from Bunceton, speaks during Missouri House debate on Feb. 12 (Tim Bommel\/Missouri House Communications). <\/p>\n<\/figcaption><\/figure>\n

A revised <\/span>property tax overhaul<\/span><\/a> proposes to lower the minimum school levy \u2014 the lowest tax a district can impose and still qualify for state aid \u2014 by up to 20%, the first cut since Missouri law began mandating a minimum in 1988.<\/span><\/p>\n

Under <\/span>a bill<\/span><\/a> sent to the Missouri Senate on Thursday by the House, tax rates currently at the minimum levy of $2.75 per $100 assessed value would would have to roll back their tax rates as property values rise \u2014 but only until they hit the proposed new floor of $2.20 per $100.<\/span><\/p>\n

The bill passed on a bipartisan 133-13 vote.<\/span><\/p>\n

The bill seeks to control property tax bill increases by <\/span>\u201csiloing\u201d property classes<\/span><\/a> with separate rates for residential, commercial, agricultural and personal property. A <\/span>separate bill<\/span><\/a> that would move all property tax elections to November in even numbered years is awaiting House debate.\u00a0<\/span><\/p>\n

The minimum levy is the lowest rate that can be charged by a school district and still receive state aid <\/span>through the foundation formula<\/span><\/a>. No district would be required to cut taxes immediately and no rollbacks that would have resulted from previous reassessment cycles would be imposed, the bill\u2019s sponsor, Republican state Rep. Tim Taylor of Bunceton, said during debate on Tuesday.<\/span><\/p>\n

That will protect current revenue, Taylor said, while promising future relief. School districts currently at the minimum would be subject to the same rules governing other taxing districts, which must reduce rates to avoid a windfall of revenue when assessments increase faster than inflation,\u00a0<\/span><\/p>\n

\u201cThe schools would remain whole, even with the rollbacks, but they\u2019re not receiving that,\u201d Taylor said. \u201cThat has been my goal this whole time, is to allow those districts to lower that floor so that those districts, those folks in the districts, can get that Hancock provision rollback.\u201d<\/span><\/p>\n

State Rep. Kathy Steinhoff, a Columbia Democrat and former teacher, had been skeptical of the provision lowering the minimum levy during committee debate and voted against the bill. Provisions protecting current revenue make it more palatable, she said.<\/span><\/p>\n

The issue, she said, is how much should local taxpayers contribute to maintain state support.<\/span><\/p>\n

\u201cIt was kind of that social contract of, you have a minimum levy set to this, and then you will be able to participate in the foundation formula,\u201d Steinhoff said.<\/span><\/p>\n

<\/strong><\/p>\n

Minimum levy history<\/h4>\n

\t<\/p>\n

During debate Tuesday on the property tax bill, no House member knew why there is a minimum school levy at all.<\/span><\/p>\n

\u201cAs far as I understand it, it\u2019s because of the federal funding, the federal reimbursement\u201d that districts receive, Taylor said. \u201cAnd I\u2019m going to be completely honest, I can\u2019t go into the foundation formula with any knowledge.\u201d<\/span><\/p>\n

Prior to 1988, there was no minimum local property tax levy for school districts.\u00a0<\/span><\/p>\n

The Missouri Constitution at the time allowed school districts to set the rate at $1.25 per $100 assessed value without a public vote but did not require it.<\/span><\/p>\n

That constitutional limit without a vote became the <\/span>floor for receiving state aid<\/span><\/a> because two things combined to convince lawmakers and then-Gov. John Ashcroft that it was needed \u2014 the enactment of the Hancock Amendment in 1980 and the passage of the 1-cent <\/span>Proposition C sales tax<\/span><\/a> in 1982.<\/span><\/p>\n

The Hancock Amendment\u2019s property tax provisions address how local governments should change rates when assessed values rise faster than inflation. It allows the taxing district to capture enough revenue to match inflation and requires rates to be lowered so there is not a windfall of revenue.<\/span><\/p>\n

The sales tax revenue, which is distributed to schools on a per-pupil basis, had two purposes \u2014 half was earmarked as new funds for education, the other half was used to offset lower property tax rates.<\/span><\/p>\n

\"\"
State Rep. Kathy Steinhoff, a Columbia Democrat, speaks during House debate about how property tax affects local schools (Annelise Hanshaw\/Missouri Independent).<\/em><\/figcaption><\/figure>\n

By 1987, there were 86 districts below $1.25 per $100 assessed value. Three \u2014 two in Ripley County and one in Pulaski County \u2014 had no local levy at all, the state auditor\u2019s 1988 annual report on property taxes shows.<\/span><\/p>\n

The minimum levy was increased five years later as part of a major education bill that revised the school-aid formula. That formula promised each district it would receive funding equal to what its local levy would produce in the district with property wealth equal to 90% of the property value of the state\u2019s wealthiest district.<\/span><\/p>\n

The higher local voters set a levy, the more state aid the formula would provide.<\/span><\/p>\n

\u201cIt was a levy-driven formula,\u201d said Otto Fajen, lobbyist for the Missouri National Education Association. Fajen was a Senate staffer when the formula revision passed in 1993.<\/span><\/p>\n

\u201cIt was the linchpin by which we addressed equity and adequacy,\u201d Fajen said.<\/span><\/p>\n

To protect the minimum levy, first state law, then the constitution, were changed to allow districts to remain at $2.75 regardless of how much of a rollback was required by the Hancock Amendment or Proposition C revenue.<\/span><\/p>\n

The formula was changed again in 2005, but the minimum levy was retained. The local levy rate is no longer the basis for determining how much state aid a district receives.<\/span><\/p>\n

\u201cThe formula doesn\u2019t really care about equity, and so what I would describe as tax rate indifferent to a degree,\u201d Fajen said. \u201cThat\u2019s an historical artifact.There\u2019s no current real relevance of that number.\u201d<\/span><\/p>\n

The state auditor\u2019s <\/span>annual report<\/span><\/a> on property tax rates shows there were 63 school districts that levied the $2.75 minimum on all property in 2025, and three at that rate on at least one type of property in St. Louis County, where there are separate rates for residential, commercial, agricultural and personal property.<\/span><\/p>\n

The provisions of the bill address only Hancock Amendment rollbacks, which districts charging above the minimum levy must make when needed.\u00a0<\/span><\/p>\n

Most districts have asked \u2014 and received \u2014 voter permission to waive their Proposition C rollbacks. The bill does not change that and does not require districts to include new Proposition C revenue as part of their rollback calculation.<\/span><\/p>\n

That is important because Proposition C revenue has increased by about 40% in the past five years, from about $925 million in fiscal 2020 to $1.3 billion in the year that ended June 30.<\/span><\/p>\n

Proposition C rollbacks are required in statute and lawmakers can write a bill excluding the new minimum from that provision, Taylor said in an interview with The Independent.<\/span><\/p>\n

Hancock rollbacks are designed to maintain revenue and are part of the constitution, so the law must recognize that, he added.<\/span><\/p>\n

\u201cThe schools would remain whole, even with the rollbacks, but they\u2019re not receiving that,\u201d Taylor said. \u201cThat has been my goal this whole time, is to allow those districts to lower that floor so that those districts, those folks in the districts, can get that Hancock provision rollback.\u201d<\/span><\/p>\n

Lawmakers are changing the minimum levy at the same time a <\/span>new foundation formula is being crafted<\/span><\/a> by a task force appointed last year by Gov. Mike Kehoe.<\/span><\/p>\n

During debate, Steinhoff said the interplay between legislation and the task force work is her biggest concern about the property tax bill.<\/span><\/p>\n

\u201cI am worried that we are going to do something that could totally upset the apple cart that\u2019s being created in another very important task force,\u201d she said.<\/span><\/p>\n

Property tax increases are one of the biggest public concerns right now, Taylor said, and doing nothing is not an option.<\/span><\/p>\n

\u201cUntil somebody starts it, it\u2019s not going to get done,\u201d Taylor said. \u201cAnd our taxpayers are asking us to get something done.\u201d<\/span><\/p>\n

<\/strong><\/p>\n

Revised bill<\/h4>\n

\t<\/p>\n

The bill passed Thursday was debated in the House two times. It won <\/span>preliminary approval<\/span><\/a> in early February, but before it came up for a final vote, flaws in language on tax elections <\/span>forced a rewrite<\/span><\/a>, and the result was splitting off the election provisions to a separate bill.<\/span><\/p>\n

The key provision that will provide relief to taxpayers, Taylor said during Tuesday\u2019s debate, is the change that would require separate tax rates for the various types of property.<\/span><\/p>\n

\u201cIt is truly the one thing that is going to bring some relief to our constituents back home, and even to us as individual taxpayers,\u201d he said.<\/span><\/p>\n

The legislature tried to require separate rates in legislation passed in 2002, but only St. Louis County and the city of Gladstone adopted the voluntary move. Taylor\u2019s bill would make it mandatory in the remaining 113 counties and the city of St. Louis.<\/span><\/p>\n

Because Hancock rollbacks look at total revenue from a tax levy, when assessed values in one type of property rise rapidly, it <\/span>shifts the burden<\/span><\/a> to those taxpayers.<\/span><\/p>\n

\u201cIf one of them skyrockets, which we\u2019ve seen, it can be watered down by the other subclasses who may have gone down or remain level, and that says that Hancock shouldn\u2019t kick in,\u201d Taylor said during debate.\u00a0<\/span><\/p>\n

\n

Missouri property tax overhaul bill may inadvertently move municipal elections to November<\/a><\/p>\n<\/blockquote>\n

The Missouri State Tax Commission has been pushing local assessors to increase appraised values to match market prices for residential and commercial property. At the same time, taxable value of farmland, set by the commission based on productive value, is below <\/span>what it was in 1985<\/span><\/a> and values for railroad, pipeline and utility property, also set by the commission, have lagged behind other property.<\/span><\/p>\n

The additional taxes on residential property because of the shifting burden was one of the biggest concerns raised as Taylor\u2019s committee studying property taxes toured the state last summer, said state Rep. Jim Murphy, a Republican from St. Louis County.<\/span><\/p>\n

\u201cIn the last few years, as we saw residential assessments go up and the other assessments didn\u2019t, it just piled more and more tax burden onto our residential property owners,\u201d Murphy said. \u201cAnd that was the biggest thing we heard as we traveled this state. The biggest concern we heard from taxpayers\u2026\u201d<\/span><\/p>\n

\u201cWas that people,\u201d Taylor said as he finished Murphy\u2019s sentence, \u201cwould be taxed out of their homes.\u201d<\/span><\/p>","protected":false},"excerpt":{"rendered":"

State Rep. Tim Taylor, a Republican from Bunceton, speaks during Missouri House debate on Feb. 12 (Tim Bommel\/Missouri House Communications). A revised property tax overhaul proposes to lower the minimum school levy \u2014 the lowest tax a district can impose and still qualify for state aid \u2014 by up to 20%, the first cut since…<\/p>\n","protected":false},"author":2,"featured_media":8860,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nMissouri House moves to cut minimum school levy in property tax overhaul - WestplexNews.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/westplexnews.com\/index.php\/2026\/03\/05\/missouri-house-moves-to-cut-minimum-school-levy-in-property-tax-overhaul\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Missouri House moves to cut minimum school levy in property tax overhaul - WestplexNews.com\" \/>\n<meta property=\"og:description\" content=\"State Rep. 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Tim Taylor, a Republican from Bunceton, speaks during Missouri House debate on Feb. 12 (Tim Bommel\/Missouri House Communications). 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