JEFFERSON CITY — A state senator from St. Charles County faced familiar opposition Tuesday in his quest to cut the annual tax Missourians pay on their vehicles, boats and campers.
State Sen. Bill Eigel, a Weldon Spring Republican who is running for governor, said during a Tuesday committee hearing the personal property tax was “hammering†Missourians. Under his legislation, “You won’t have to pay rent to the government every Dec. 1 for the crime of owning a car.â€
But representatives from several St. Charles County taxing districts spoke out against Eigel’s bill, a sign of obstacles to come as proponents attempt to push the phaseout to Gov. Mike Parson’s desk.
Kelly Cope, chief of the St. Charles County Ambulance District; Tom Vineyard, chief of the O’Fallon Fire Protection District; and Skip Stephens, chief of the Cottleville Fire Protection District, all spoke out against the legislation.
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“Our biggest concern is related to the implementation of the bill,†Cope said, adding there would be difficulty in managing funding changes.
All three against last year’s plan by Eigel to slash the personal property tax.
Nancy Pennington, director of the Missouri Association of County Developmental Disabilities Services, said local developmental disabilities boards property taxes and that “we’re concerned about any cut to those funding revenues.â€
Personal property is currently assessed at a third of its real value, which local governments then tax.
Eigel’s proposal would reduce the assessment rate for personal property as revenues rise from higher real property assessments.
“We’re only cutting from future increases,†Eigel said.
Otto Fajen, lobbyist for the Missouri National Education Association, said “what this bill is basically saying is, as you see real property growth, you’re not gonna see any net increase in your revenues for some period of reassessment cycles.â€
The legislation also allows the state to reimburse local governments that collect less revenue than permitted under the change in law.
Pennington said she appreciated that lawmakers were allowing for reimbursements, but said her group was concerned the funds were up to the discretion of the Legislature.
She said that if there’s a way to make up lost revenues and get people services they need, she guessed her organization would support transitioning.
“But we are worried about any loss of growth that may happen as the needs for services increase and the prevalence of things such as autism continue to grow,†Pennington said.
The Senate Economic Development and Tax Policy Committee did not vote on Eigel’s measure Tuesday.
Eigel has long feuded with Senate GOP leadership over various issues including the personal property tax.
A plan the state senator advanced last year would’ve exempted vehicles and farm machinery at least 10 years old from the tax. That plan would’ve also reduced the assessment rate from 33% to 31%.
Though the plan won initial approval in the upper chamber in February, senators later pumped the brakes amid concerns the change would be too costly for government.
As the Senate began debate on the tax Tuesday, the House was poised to consider the issue.
House Majority Leader Jon Patterson, R-Lee’s Summit, said he prefers phasing the tax out over time to ease the financial damage that could be inflicted on local governments.
“I think it is something we ought to address,†Patterson said Tuesday.
The legislation is Sena
Kurt Erickson of the Post-Dispatch contributed to this report.