The House has given initial approval to a plan to lessen the increases Missourians will see in their property taxes due to rising vehicle values.
Representative Brad Hudson (R-Cape Fair) is a former county assessor. He explained to his colleagues that the values of vehicles in the National Auto Dealers Association price guide have increased significantly. This guide is what assessors must, by statute, use to assess the values of Missourians’ cars.
The State Tax Commission testified in favor of the bill when it was in a House committee. Its legislative liaison, former state representative David Wood, explained that statute requires assessors to base vehicle values on NADA prices from each October. He’s seen reports that vehicle sales prices year-to-year have increased as much as 40-percent.
He explained that assessors use average trade-in values and not sales values, but those will still cause significant increases for taxpayers. Wood told his former colleagues that even a 10-percent increase in used car values would equal an increase of about $100-million in collected taxes statewide. A 15-percent increase would equal an increase of about $165-million.
House Bill 2694 would allow assessors to, instead of being restricted to using October’s NADA values, use the trade-in value for a given vehicle from that edition or either of the last two years’ October NADA guides.
HB 2694 would allow assessors to make similar determinations of the assessed value of recreational vehicles and agricultural equipment using values from the past two years, as those vehicles have seen similar increases in value.
The House has perfected the bill. Another favorable vote would send it to the Senate.
This is the third year Houx has carried this legislation and the third year that Minor has gone before the legislature, media, and others, and shared what is a very painful story for him. Last year the legislation was vetoed by Governor Mike Parson (R) because of an amendment that had been added to it, to which he objected. Houx is optimistic that without that amendment, it will become law this year.
Minor is hopeful this will be the last year he has to push for the legislation.