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HB 2755

Modifies several provisions relating to property taxes

2026 Regular Session Introduced by Jeff Coleman

HB 2755 standardizes Missouri property taxes by creating a statewide credit framework and ratio-based valuation, with stricter in-person owner involvement in reclassifications.

Referred: Emerging Issues(H)
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Bill Summary · HB 2755

Overview

House Bill 2755 (Missouri, 2026) aims to modify several provisions related to property taxes. The bill repeals existing sections and enacts four new sections addressing property classifications, assessment procedures, and property tax credits. It tightens rules around reclassification, requires in-person owner consultation for reclassifications, eliminates certain local-option tax credits, and establishes new statewide credit mechanics linked to property ownership and homestead protections. It also adjusts how the Missouri State Tax Commission handles property valuation equalization using ratio studies.

Objective and Intent

  • Create uniform rules for property classification, assessment, and tax credits.
  • Strengthen protections for property owners during reclassification and assessment processes.
  • Expand or standardize tax relief through a statewide framework of credits tied to real and personal property.
  • Implement a ratio-based approach for valuation equalization to ensure valuations are within target ranges relative to true value.

Key Provisions and Changes

  1. Property Classification and Reclassification (137.016)

    • Defines and clarifies three main property classes under Article X:
      • Residential property (broad definition including certain multifamily and specific non-traditional residential uses).
      • Agricultural and horticultural property (broadly defined with inclusions such as urban/community gardens and certain sawmills, reliever airports, and forest croplands caveats).
      • Utility/industrial/railroad and other real property (commercial and similar uses).
    • Adds requirements and criteria for allocating uses when property serves multiple purposes.

  2. Reclassification Procedures and In-Person Consultation (137.016, new 137.016 subsections)

    • An assessor may not reclassify real property without first conducting an in-person consultation with the owner of record.
    • Compliance can be satisfied by documenting good-faith contact attempts (mail, phone, electronic notices).

  3. Assessment and Levy Adjustments (137.115; new 137.1058)

    • Repeals the specific statutory framework for local property tax credits tied to homesteads and replaces it with a statewide framework.
    • Introduces an eligible credit amount, which is the difference between current real property tax liability and the initial credit year liability, subject to annual increases (2.5% or inflation-based, whichever is lower; with special 7.5% cap in certain “below true value” counties until they are no longer below true value).
    • Requires counties to apply the credit when calculating property tax liability and to note the credit on tax statements.
    • Allows annexation or new construction to adjust initial credit-year liability.
    • Requires annual notification to political subdivisions of total credit amounts.

  4. Valuation Equalization Standards (138.390)

    • Shifts from a broad equalization mandate to a ratio-based approach using ratio studies.
    • Properties will be considered below or above true value based on weighted median ratio, coefficient of dispersion, and confidence interval criteria.
    • Establishes objective thresholds (e.g., 75% floor and up to 100% of true value) for determining valuation alignment.

  5. Personal Property and Other Provisions (137.115; 137.1055 – old sections rewritten)

    • Continues annual assessment framework for personal property at standardized percentages.
    • Maintains various existing valuation and reporting requirements, with updates aligning to the new credit and ratio-based approaches.
    • Addresses several specifics on valuation percentages for subclasses, and how to treat manufactured homes (with related tax and lien considerations).

  6. Credit Mechanics for Personal Property (137.1058)

    • Establishes a parallel framework for credits related to personal property tax liability increases, ensuring increases on individual items are capped with a corresponding credit.

Beneficiaries and Impacts

  • Property Owners (Real and Personal): Stronger protections during reclassification (mandatory in-person or documented good-faith contact), potential for credits against real and personal property taxes, and clearer processes around annexation and new construction impacts on credits.
  • County Assessors and Local Governments: New procedures for reclassification, assessment planning, and credit administration; need to compute and apply credits and notify subdivisions.
  • Taxing Jurisdictions and State Tax Commission: Must apply ratio-based equalization analysis, publish and monitor credit amounts, and adjust levy planning to reflect credits and valuation changes.
  • Real Estate and Agricultural Sectors: Expanded definitions of agricultural/ horticultural property could influence classification and tax treatment; urban/community gardens receive explicit inclusion.

Procedural and Timeline Notes

  • Revisions apply to reassessment and valuation practices, with specific references to initial credit year (2024) and subsequent years for credit calculations.
  • By April 2026, counties must place a ballot measure to grant the proposed statewide credit (subject to local voter approval) for eligible taxpayers in the county.
  • Counties must notify political subdivisions of credit totals by November 30 every year.
  • The bill repeals certain prior homestead credit provisions and replaces them with the statewide credit framework; no overlap in eligibility for credits under both the new framework and prior provisions.

Summary

HB 2755 seeks to standardize property tax administration in Missouri by redefining property classifications, tightening reclassification practices with in-person owner consultation, introducing a statewide credit mechanism for real and personal property taxes (with defined caps and adjustment rules), and implementing a ratio-based approach for valuation equalization. The net effect is designed to increase predictability for taxpayers, provide targeted tax relief through credits, and improve assessment accuracy through data-driven valuation practices. The bill emphasizes owner notification, access to recourse in reclassification and inspection processes, and alignment of local practices with a standardized statewide framework.

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

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