Summary — HB 1800 (Inflationary Growth Factor cap for property assessment growth)
Note on source materials
- The provided packet contains text from multiple distinct bills titled “HB 1800” from different states (notably a Missouri tax/assessment provision and an Arkansas campaign‑finance/foreign‑agent disclosure bill). This summary focuses on the measure described in the bill header: a change to the percentage cap on the inflationary growth factor used for adjusting tax levies to reflect assessment growth (the Missouri Section 137.073 excerpt).
Purpose and intent
- To limit how much political subdivisions may adjust property tax levies to capture revenue from “inflationary assessment growth” (assessment increases not due to new construction or improvements). The change reduces the maximum percent that may be used as the inflationary growth factor beginning in 2027.
Key provisions
- Definitions: Retains standard definitions used in Section 137.073 (e.g., “general reassessment,” “tax revenue,” “tax rate ceiling”).
- Levy adjustment rule: Political subdivisions must revise levy rates after assessor valuation changes so that, exclusive of new construction/improvements, they collect substantially the same tax revenue as the prior year.
- Inflationary growth factor cap: The inflationary growth factor (used to adjust levies for assessment growth) is limited to actual assessment growth but may not exceed the lesser of:
- the Consumer Price Index (CPI), or
- a statutory percentage that depends on timing:
- For levy revisions occurring before January 1, 2027: 5%; or
- For levy revisions occurring on or after January 1, 2027: 3%.
- Other technical provisions in Section 137.073 (including treatment of subclass reassignments and voter‑approved rates) remain in place; the bill repeals and reenacts Section 137.073 to incorporate the change.
Who is affected
- All political subdivisions that levy property taxes in the state (counties, cities, school districts, special districts, etc.). The cap limits how much these entities can increase levies administratively to capture increased assessed value without voter approval.
Potential impacts
- Limits automatic property‑tax revenue growth available to local governments when assessed values rise: after Jan 1, 2027 the automatic inflationary adjustment is capped at 3% (or CPI if lower).
- Could increase pressure on subdivisions to seek voter approval for higher rates or to adjust budgets if assessment growth exceeds the cap.
- May moderate growth in property tax bills attributable solely to reassessment-driven levy changes.
Procedural/timeline notes
- The statutory change is phased by date: the stricter (3%) cap applies to levy revisions occurring on or after January 1, 2027.
- The packet’s legislative action log indicates the measure underwent readings, committee consideration, amendments, and (per entries) was enrolled/acted on in spring 2025 (with a notification entry dated 2025‑04‑22 stating “now Act 998”). The packet also contains other HB 1800 materials (campaign‑finance/foreign‑agent disclosure) that are separate measures and should not be conflated with this assessment/levy change.
If you want, I can:
- Produce a short explainer showing example revenue calculations under the old vs. new caps, or
- Summarize the separate Arkansas campaign‑finance HB 1800 content included in the packet.
