Missouri Property Tax & School Funding

Our district is closely monitoring property tax legislation currently under discussion in Jefferson City. These proposals could affect how schools are funded and how future ballot measures are presented to voters.

Below is a clear summary of what is happening and what it could mean for our community.

Omnibus Property Tax Bill Sent Back to Committee

Missouri House Bill 2780 (HB 2780) was recently returned to committee after it did not receive enough support to move forward in the Missouri House.

What This Means:

• The bill will be revised before it can advance.

• Several concerning provisions are expected to be removed or scaled back.

• Discussions on property tax reform are ongoing.

School leaders across Missouri, including many from rural districts, engaged lawmakers to explain how certain provisions could impact students, staffing, and local programs. That outreach made a difference.

Additional Property Tax Bills Moving Forward

Three narrower bills are advancing to the Missouri Senate:

Missouri House Bill 1766

Would change how personal property growth is calculated under the Hancock rollback formula.
Potential Impact: Could reduce districts’ ability to grow revenue alongside community growth and enrollment increases.

Missouri House Bill 1790

Would:

• Require tax ballot questions to be labeled generically (e.g., “Proposition A”)

• Require tax impacts to be shown in dollar amounts per $100,000 of property value

• Change how temporary and permanent levy increases interact

Potential Impact: Affects how future school levy questions are structured and presented to voters.

Missouri House Bill 2178

Would:

• Modify property assessment procedures

• Expand taxpayer appeal rights

• Require tax credits if property tax liability increases more than 15%

Potential Impact: Could affect assessed valuation growth and long-term school revenue stability.

Missouri School Funding Context

Understanding how Missouri funds schools is important as these discussions continue.

Per-Student Spending

• Missouri: $13,712 per student

• U.S. Average: $16,560 per student

• Missouri ranks 35th lowest nationally

Who Funds Missouri Schools?

National Average State Contribution: 45.1%
Missouri contributes between 28.6% and 36.4%, depending on how funding is categorized.

National Average Local Contribution: 42%
Missouri relies on local taxpayers for between 49.8% and 57.5% of school funding.

Missouri ranks:

• In the bottom 10 states for state funding share

• In the top 10 states for reliance on local funding

About Proposition C

Missouri Proposition C is a statewide one-cent sales tax dedicated to education and distributed to school districts through the Foundation Formula.

How it is classified (state vs. local revenue) slightly changes the percentages, but it does not change Missouri’s overall national ranking.

What This Means for Our Community

• Missouri schools rely heavily on local taxpayers compared to most states.

• Property tax legislation directly affects school funding stability.

• Changes to ballot language laws could impact how future school funding questions appear on ballots.

• Ongoing Foundation Formula discussions may further shape state and local funding responsibilities.

Our district will continue monitoring these bills and advocating for policies that support students, protect local decision-making, and maintain stable funding for educational programs.

We will keep our community informed as legislation develops.

Respectfully Submitted,

Chrystal