JEFFERSON CITY — A bill aimed at limiting property tax increases and simplifying levies drew both support and concern during a public hearing Wednesday.
House Bill 2780, sponsored by Rep. Tim Taylor, R-Bunceton, and carried in the Senate by Sen. Brad Hudson, R-Cape Fair, proposes many changes to Missouri’s current property tax system. The bill was heard by the Senate Select Committee on Property Tax, where much of the discussion focused on how proposed levy changes could affect school district funding across Missouri.
Some concern from school officials stems from a provision that would require districts that currently have levies of $2.75 per $100 of appraised property value to maintain the same levy in 2027. After 2027, these levies would be free to change.
Abigail Boyle, ninth grade class president at Licking High School, said the bill could lead to cuts to sports and extracurricular activities.
“We cannot balance tax relief by taking money out of the classrooms that need it most,” Boyle said.
Missouri’s foundation formula is the largest provider of state funds to school districts and is intended to supplement property tax levies in school districts. Currently, schools must meet or exceed the $2.75 levy in order to receive foundation formula funds from the state greater than the 2005-06 foundation formula level.
Another provision of the bill would lower the levy floor to receive this state funding from $2.75 to $2.20 beginning in the 2026-27 school year. School officials expressed fears that these changes could motivate districts to lower their operating levies, limiting budget flexibility and funding.
Scott Gemes, superintendent of the Warsaw R-IX School District, testified against the bill, and said the lower levy floor could be a potential threat to rural schools.
Gemes said that his district already sits at the current minimum levy to receive funds. He said that if his school district’s levy were reduced further to $2.20, his district would be looking at a $1.2 million cut to a $17 million budget.
“What we would do is start looking at those programs that have two teachers,” Gemes said. He added that the possible $1.2 million cut would equate to the pay of 16% of the district’s teachers.
While many educators showed up to oppose the reduction of the levy floor to $2.20, the bill does not explicitly mandate that school districts must lower their operating levies to a lower level.
School districts could also see lower funding as a result of the bill’s central provision. Currently, the inflation rate of all different types of property in an area — including residential, commercial and agricultural — is combined when rollbacks are determined based on inflation.
The central provision of Taylor’s bill would silo these categories so that stagnant inflation rates in one category do not prevent another category from increased rollbacks. If property tax rollbacks are increased, as the bill intends, school districts could see lower funding.
Sen. Joe Nicola, R-Grain Valley, said he understands the school districts’ concerns but stressed the importance of finding a solution that will provide taxpayers with relief.
“I have people that can’t afford the taxes,” Nicola said. “It’s detrimental to my homeowners, too, and so we have to make some adjustments.”
