04/02/2026
Regarding Tax question on April ballot:
Property tax reform provisions in Missouri Senate Bill 3
In an extraordinary legislative session in June 2025, Missouri passed Senate Bill 3 (SB 3)‡, a wide-ranging bill that included stadium financing, disaster tax credits, and significant changes to the state’s property tax system. The property tax provisions offer homeowners potential relief from rising tax bills but have prompted a constitutional lawsuit and raised concerns among political subdivisions that depend on property tax revenue.
SB 3 requires the majority of counties (97 of 114) to place a measure on the ballot by April 2026, allowing voters to decide on property tax credits for eligible homeowners. The bill divides these affected counties into two categories, each with a different set of rules.
Possible implications
For most political subdivisions, such as school districts and cities, property taxes are a vital and stable funding source. For certain special districts like fire districts and libraries, property tax revenues are often their only meaningful revenue source. SB 3 threatens this stability and creates the following possible implications, among others:
Inability to keep pace with rising costs: In five-percent counties, even with growth tied to inflation, annual collections may not keep pace with rising costs for services and materials. In zero-percent counties, revenue is outright capped, which is equivalent to a revenue reduction over time.
Service reductions: Local governments facing stagnant or declining revenues will likely be forced to consider service cuts. Potential impacts include larger class sizes, fewer library programs, reduced fire and emergency services, and weaker infrastructure maintenance.
Uncertainty and complexity: The bill introduces financial uncertainty for political subdivisions that cross county lines and fall under multiple tax rules. Additionally, the complex system has been criticized for being overly convoluted and creating budgetary challenges. Indeed, it will be incredibly challenging for political subdivisions to prepare an annual budget without having the ability to accurately forecast revenues.