Session Wrap Up

The final days of the 2nd Regular Session of the 94th General Assembly came to close at 6pm on May 16, 2008. Each session brings with it numerous opportunities and challenges and this session was no different. The top three issues addressed by the General Assembly this year were property tax reform, illegal immigration, and economic development.

Property Tax Reform (SB711)
Judging by the contacts I receive from constituents, property taxes have become a number one priority of the people in Clay County. I have heard from many of you who are struggling to afford to stay in your homes due to steep increases in assessed valuation that in turn lead to a large increase in your property tax bill and the arrogance of our county to make us pay for penalties and interest due to an error of their own making. The legislature was successful in passing legislation that requires that property tax increases exceeding inflation be automatically rolled back to the previous year’s tax rate. Additionally, this legislation requires that counties refund fees or interest charged when the county was at fault. Additional property tax relief will also be available to seniors and the disabled with incomes up to $30,000 for a single homeowner and $34,000 for married couples by increasing the “circuit breaker” tax credit up to $1,100.

Illegal Immigration (HB1549)
Under new legislation the state of Missouri will pick up where the federal government has failed. Inadequate enforcement of our immigration laws by the federal government gave Missouri cause to empower our law enforcement, protect taxpayer benefits, and remove the magnets that attract illegal aliens to Missouri.

This comprehensive legislation requires the Highway Patrol and other law enforcement agencies to verify the immigration status of any person arrested and inform the federal authorities if a person is found to be here illegally and allow additional Missouri law enforcement officers to receive training to enforce federal immigration laws. In addition to empowering law enforcement, this legislation also makes it clear that illegal aliens will not have access to taxpayer benefits, such as state-provided health insurance and food stamps. This will help add greater accountability to our public benefit programs while saving taxpayers money. In addition, this legislation prohibits sanctuary cities designations and criminalizes those who transport illegal aliens in violation of human trafficking laws. Employers who knowingly hire illegal aliens or who intentionally falsify the classification of employees as contractors will also face sanctions and penalties.

Economic Development (HB2393)
Job creation remains a top priority for the legislature. This year, the legislature expanded the Quality Jobs Act and the Enhanced Enterprise Zones program to further attract and retain family supporting jobs. The legislature also approved a “mega project” plan to attract an aircraft assembly plant in Kansas City. This project has the potential to directly employ 2,100 people with many additional ancillary jobs that could double that number. In addition, a proposal was approved to finally clear the way for new development around KCI that could attract new warehousing and light manufacturing opportunities for our region.

In addition to these major initiatives, a wide range of legislation dealing with everything from agriculture to education to autism health care and scrap metal theft were also addressed.

Mortgage fraud legislation passed this session lets those looking to take advantage of homebuyers know that Missouri will not tolerate mortgage fraud. The legislation places local prosecutors on the same footing as federal investigators who were the only ones that were able to prosecute offenders and were extremely inefficient. It also creates civil and criminal penalties for residential mortgage fraud.

Legislation was also passed to create the "Missouri Returning Heroes' Education Act" to assist veterans returning from Iraq and Afghanistan by limiting the tuition public universities can charge. It also creates a tuition grant for survivors of veterans who are disabled or killed in combat and seeks to improve educational opportunities for the sons and daughters of military personnel by removing barriers placed on them caused by frequent moves.

Progress in Missouri

This past week was a very busy week for the House and the Senate. The House worked into the early morning Thursday to pass over 70 bills that are considered “consent”, i.e. bills that are not controversial, do not come with a cost to taxpayers, and have no penalties associated with them. In addition, legislation passed both chambers that could have a significant positive impact for Missouri.

Property Taxes - HJR43
As I mentioned earlier in the year, the General Assembly is considering a number of ways to help people suffering from the financial strain caused by excessive property taxes. The House has passed a proposed constitutional amendment that, upon voter approval, changes the rollback requirement for the Hancock Amendment by requiring the current levy, instead of the voter approved maximum levy, to be reduced in a reassessment year. These rollbacks are intended to protect property owners from sharp tax rate increases and prevent windfall revenues by taxing entities in reassessment years. If approved by the Senate, it will be on the ballot for voters to approve in November 2008.

Judicial Taxation – HJR41
While we can’t control the actions of federal judges, we can ensure Missouri judges don’t overreach and stake a claim on the power to tax. The House gave approval this past week for a proposed constitutional amendment that would clearly state that the judiciary does not have the power to tax through court order. Specifically, this proposed amendment prohibits the Missouri Supreme Court or any other court of the state from ordering the state, a county, or any city to increase taxes. The amendment also prohibits any Missouri court from controlling how the state, a county, or any city spends, allocates, or budgets, except as expressly authorized by legislation or approved by Missouri voters. If approved by the Senate, it will be on the ballot for voters to approve this November.

Illegal Immigration – SB858
The Missouri Senate kept itself busy this past week by approving legislation dealing with the problem of illegal immigration. The bill has a number of provisions including: prohibiting illegal aliens from obtaining a driver’s license; prohibiting the creation of sanctuary cities in the state; requiring verification of the legal employment status of every public employee; allowing for the cancellation of state contracts for contractors if they hire illegal immigrants; requiring public agencies to verify the legal status of applicants before providing welfare benefits; criminalizing the transportation of illegal aliens for the purposes of human trafficking, drug trafficking, prostitution, or illegal labor; and enacting provisions to punish bad acting employers who hire illegal aliens. This bill is now under consideration of the House.

Protecting Missourians from excessive property taxes; strengthening our Constitution by further defining the roles of the judicial, legislative, and executive branches; and taking leadership to protect our national sovereignty – not a bad week, not a bad week at all.

Property Taxes

“Milk the cow, but do not pull off the udder,” or so goes an old Greek proverb so goes the experience of property owners throughout Missouri.

No one disputes the necessary evil of taxes to fund vital public services that range from fire and police protection, to water and sewer service, to funding schools to educate the next generation. Tax paying citizens deserve that our local political subdivisions do their level best to be stewards of these tax dollars making sure that each dollar that is collected is spent wisely and the greatest value possible is received in return. A system of equitable taxation, open books, and accountability are essential for good and sound government.

It is difficult to find a region in our great state, especially in the suburban areas, where property owners are not struggling to meet the financial burden that results from the ever-increasing property values and the corresponding increase their property tax burden. In some counties in Missouri, assessed values increased by an average of 22% between 2005 and 2007. Such increases touch every family, but its harshest impact is felt by those on fixed incomes.

To add insult to injury, our assessed valuations trail the home market resulting in valuations that may not accurately reflect the market price of a home. While Missouri is feeling the pinch of dropping median home prices, we are much better off than some parts of the country. Property taxes remain a local issue, but these striking increases call for action at the state level and property tax reform is a top priority this session.

The Missouri Senate has passed a bill that mandates tax rate rollbacks by all political subdivisions in reassessment years (SB711). These rollbacks are intended to protect property owners from sharp tax rate increases and prevent windfall revenues by taxing entities in reassessment years.

The bill also allows the ability for taxpayers to pay their property taxes in installments to prevent the “shock” of lump sum tax payments at year-end during the holiday season. Current law already allows counties to opt for quarterly installments, so this bill will require counties to provide taxpayers an estimate of their tax liability in the spring.

Citizens should never be liable for the errors of government, but in Clay County citizens are held liable for penalties and interest even when an error is made by the county. Unfortunately, our county collector will not make any exceptions and citizens are not prone to go to court, or are unaware of that alternative to prove their innocence. In either case, the taxpayer should not have to bear the burden of legal fees and the hassle of a lawsuit, because the county is unwilling to admit fault and waive the penalties and interest. This bill, and a companion House bill (HB1958) which I have co-sponsored, prohibits the imposition of penalties and interest where there is clear and convincing evidence that a county made an error in the determination of taxes owed by a taxpayer.

The Missouri House is considering an increase in the income cap for property tax relief known as the circuit breaker (HB1321). The program is currently available to seniors and disabled individuals who make $27,500. This bill would raise the cap to $32,500 for a single person and $36,500 for a married couple while increasing the maximum tax credit from $750 to $800.

Another bill under consideration by the House (HJR59) is a constitutional amendment exempting Missouri citizens on active military duty from paying personal property taxes.

Property tax reform is a very complex issue. Radio-television personality Arthur Godfrey proclaimed, “I'm proud to be paying taxes in the United States. The only thing is - I could be just as proud for half the money.” The best humor is always rooted in truth. We should demand accountability in the usage of our tax dollars and we deserve an open and accurate assessment process that prevents government from taking advantage of them.