Missouri House Speaker Jon Patterson formed a Special Interim Committee on Property Tax Reform on Monday and is considering calling lawmakers back for a special session in September to address what he calls a "crisis" level problem with rising property taxes across the state.
The move comes amid questions about the constitutionality of property tax caps included in Governor Mike Kehoe's stadium funding legislation passed earlier this month, which could draw lawmakers back to Jefferson City to craft broader reforms.
The property tax amendment attached to the $1.5 billion sports stadium incentive package has created a "fissure among conservatives in the Missouri Senate," according to KCUR1. The legislation would cap property tax increases at 5% annually in 75 counties, while freezing them entirely in 22 others. However, larger counties including Boone, Greene, Jackson, St. Louis County and the city of St. Louis were excluded altogether1.
Critics argue the measure violates the Missouri Constitution's requirement that property taxes be "uniform upon the same class or subclass of subjects"1. Some conservatives called it "an unconstitutional bait and switch designed to fool taxpayers"1.
Patterson's committee has been empowered to study Missouri's property tax system and recommend "solutions to ensure fairness, transparency and sustainability for taxpayers and municipalities," according to Spectrum Local News2.
"You go around to any of the counties… and they're bringing up property taxes," Patterson said earlier this month. "This is a huge problem. I would say it goes to crisis levels"1.
Rising housing costs coupled with property reassessments have put pressure on the system that provides the main source of revenue for local governments, funding schools, public safety and other functions1. All Missouri counties conducted reassessments this year based on January 1, 2025 market conditions, affecting tax liabilities for both 2025 and 20262.
The issue has emerged even in discussions over the state's public school funding formula, with a state task force studying how property taxes contribute to funding inequities1.
The property tax debate unfolds as Missouri enacted sweeping tax changes this year, including elimination of state capital gains taxes and sales tax exemptions for diapers and feminine hygiene products12. The legislature also expanded property tax credits for low-income seniors and disabled residents1.
Any broad-based property tax reform would likely need to include alternatives to funding local services currently paid for by property taxes, according to Spectrum Local News3.
