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Missouri Senate committee OKs property tax phase-out

A proposal approved by a Missouri Senate committee could phase out a large portion of personal property tax assessments in the state by 2026. Currently, personal property tax is assessed at 33.3 percent of its real value.

New legislation sponsored by Sen. Bill Eigel, would phase out personal property tax assessments to a much smaller percentage by 2026.

The proposal passed during a Missouri Senate committee hearing last week.

During the hearing, Eigel said only 21 states collect personal property tax, and Missouri’s rate is the third highest, according to a report by the St. Louis Post-Dispatch.

Eigel said personal property tax disproportionately affects less wealthy Missourians and that removing it could improve the economy.

The change would impact local governments across Missouri, opposers to the bill concerned governments could lose a significant source of revenue. Supporters like Eigel, however, view it as a potential $1.4 billion stimulus package.