Most of the focus on Senate Bill 3 was on the bidding war between Missouri and Kansas to bring in the Royals and/or the Chiefs. However, Worth County commissioners expressed concern at Monday’s commission meeting that a provision in the bill would mean fewer tax revenues for the county at a time when the county is already hurting for revenues due to being the smallest county in the state as well as a declining population.
The measure passed both houses during a recent special session and was signed into law Monday by Governor Mike Kehoe. State Representative Mazzie Christensen voted no. State Senator Rusty Black voted yes.
Dozens of counties, including Worth, will be required to place a measure on the April 6th, 2026 ballot a measure which states that real property tax valuation cannot go up more than 5% in certain counties and 0% in other counties during any year. Worth County is a 5% county under this measure. Passage requires a simple majority. If passed, the measure means that Worth County real property taxes cannot go up either 5% a year or the Consumer Price Index, whichever is greater. Taxpayers will be given a tax credit. The measure does not apply to personal property taxes.
The bill creates Section 137.1120. Section (2) (bb) designates any county under 2,000 people as a 5% county. According to US Census figures, Worth County was at 1,973 people in the 2020 census and estimated at 1,872 people as of July 1st, 2024. Gentry, Harrison, and Nodaway Counties are also 5% counties.
The bill only applies to Missouri residents who own or occupy a homestead as their primary residence. It does not apply to all real estate property.
For all counties, an eligible taxpayer's real property tax liability shall be increased to reflect any increase in tax liability derived from any new property tax levy or an increase in an existing property tax levy approved by the voters subsequent to an eligible taxpayer's initial credit year, provided that, for 5% counties, such increase shall not be considered for the purposes of calculating the allowable increase in an eligible taxpayer's real property tax liability. In other words, the Missouri State Auditor’s Office figures show the Worth County School tax levy at $3.77 per $100 assessed valuation. The school could pass, as an example, a $1.00 tax levy; however, it would take a few years for taxpayers to get up to the new amount instead of the school getting all the money right away. That would make it difficult for a school in a financial crisis to raise needed revenues in a hurry.
The bill will also create more overhead costs for counties, which have to pay for more software in order to implement the changes.
Taxpayers who make new construction improvements to their properties will still get tax increases attributable to such new construction.
If a town annexes an eligible taxpayer’s homestead into its city limits, the taxpayer’s liability will still go up to reflect the city’s tax levy.
The bill contains a severability clause so that if one part of the bill gets declared unconstitutional by the Missouri Supreme Court, the rest of the bill is still in force.
The measure could face a constitutional challenge under Section 13 of the Missouri Constitution, which states that no irrevocable grant of special privileges or immunities can be enacted. Some Missouri counties are 0% counties and others are 5% counties. The measure could be struck down in its entirety as well since it has multiple subjects. The courts have struck down other legislation recently that has had multiple subjects attached.
This section is different from the Senior Citizens Tax Freeze, which allows counties to pass a tax credit for senior citizens. On July 11th, 2024, the Nodaway County Commission passed a bill freezing the property taxes of anyone 62 and older who own and live in their primary residence. The measure does not apply to new real property taxes that arise from new construction and improvements. The measure required taxpayers to apply for it in person. Worth County did not pass such a measure.
The commission met with Matt Fazio of Great River Engineering to go over bridge contracts for 130th Road, 140th Road, Old 169, and Rim Rock Trail. Under current BRO rules, the county has to provide an 8.6% soft match to approved projects, a figure which is expected to go back to up 20% in the future. It had been 20% before Joe Biden’s Infrastructure Investment and Jobs Act was signed into law in 2021. With the expiration of funds from that law, that means counties will have to foot a bigger bill for such projects. Rim Rock Trail has been submitted to the DOT for approval.
The DOT had inspected all of Worth County’s bridges and given these bridges low marks, prompting the county to look into replacing these bridges.
The county currently has two rock trucks and three graders operating throughout the county.
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