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Bill

HB 3381

Allows county commissions to opt out of collecting late fees and penalties on delinquent property taxes

2026 Regular Session Introduced by Mark Meirath

Missouri bill allows counties to voluntarily stop collecting late fees and penalties on overdue property taxes, potentially reducing county revenue but increasing local control.

HCS Reported Do Pass (H) - AYES: 12 NOES: 0 PRESENT: 0
#counties #countygovernment #fees #property #realandpersonal #taxationandrevenue-property
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Bill Summary · HB 3381

Legislative bill overview

HB 3381 grants county commissions in Missouri the discretionary authority to opt out of collecting late fees and penalties on delinquent property taxes. Rather than mandating a statewide approach, the bill preserves local control by allowing individual counties to make their own collection policies. This represents a shift from any existing uniform state requirement regarding tax penalty collection.

Why is this important

Property tax collection directly funds essential local services including schools, emergency services, and infrastructure. How counties handle delinquent taxes affects both revenue availability and taxpayer compliance. This opt-out provision could significantly impact county budgets, as late fees and penalties are often a meaningful revenue source that incentivizes timely payment and compensates for collection costs.

Potential points of contention

  • Revenue impact: Counties opting out lose penalty revenue, potentially straining budgets for schools and services unless offset by increased base tax collection or reduced spending
  • Equity concerns: Creating different penalty structures across counties could incentivize delinquency in non-penalizing counties while disadvantaging compliant taxpayers subsidizing services
  • Compliance incentives: Removing financial penalties may reduce motivation for property owners to pay taxes on time, potentially worsening overall collection rates and cascade effects on municipal services

Compiled from official sources — confirm details with the bill’s official record.

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