Sen. Bill Eigel, R-Weldon Spring, has put forth legislation to phase out Missouri’s personal property tax by the year 2026. Advocates of the cut have highlighted its potential economic benefits, especially to less wealth Missourians, while opponents are expressing concern over the potential loss of revenue, especially to key government programs.
Currently, Missouri is one of 21 states with a personal property tax. This is collected on “tangible” property, such as machinery, boats, and most of all cars. Property is estimated at 33.3% of its value, which is then taxed.
Eigel’s plan would reduce that assessment to 25% in 2022 to 7% in 2025, before closing at 0.001% in 2026, effectively abolishing the tax entirely. He has argued that the tax cut would stimulate the economy and make up a good deal of the lost revenue through a correspond increase of returns on sales tax.
On the other hand, opponents of the proposed tax cut have expressed concerns over the loss in government funding. The current tax is estimated to bring in over $1.4 billion in revenue for the state of Missouri every year. St. Louis alone receives $16.4 million from it.
Scott Kimble, speaking on behalf of the Missouri Association of School Administrators, argued that this tax provides critical funding for education in the state. Cutting the tax would also take away an estimated $6.4 million from the Blind Pension program.