Missouri citizens work hard for their money and want to keep as much of their earnings in their wallets as possible. At a time when citizens worry about a hike in taxes and are dealing with the skyrocketing prices of basic living necessities, Missourians don’t want to open their personal property tax assessment and see a large number after the dollar sign. On April 10, a bill I’m sponsoring
(SB 454) to ensure your taxes remain as manageable as possible was voted “do pass” by its respective committee. This bill is designed to provide tax relief for citizens who pay personal property tax on motor vehicles — an expense that can be very costly for some Missourians.

Currently, county assessors are required to use the trade-in value published in the October issue of the National Automobile Dealers' Association (NADA) Official Used Car Guide as a reference when determining the value of motor vehicles for personal property tax purposes. Since the current statute was enacted, NADA updated its guide and changed its trade-in value categories to include the terms “rough trade-in” and “average trade-in,” in addition to “clean trade-in.” Assessors presently use the “clean trade-in” category to assess motor vehicles. Depending on the vehicle, using the “clean trade-in” value can increase a citizen’s tax burden by several hundred dollars more compared to when the lowest trade-in value is applied. Senate Bill 454 would require a county assessor to use the lowest trade-in value published in the October issue of a single nationally recognized guide for establishing the value of motor vehicles. This guide must be approved by the State Tax Commission in conjunction with the association representing the majority of assessors in Missouri.

The State Tax Commission would also be required to approve four additional guides for establishing the value of motor vehicles. If the owner of a motor vehicle presents evidence that any of the four other approved publications has a lower applicable trade-in value, the assessor is required to use that value in determining the vehicle's true value.

This legislation adopts the principle that, if you see a lower price elsewhere, you should not have to pay a higher amount. Missourians deserve the biggest bang for their buck and should not have to worry about busting the bank in order to own a vehicle, which most people need in order to get to work and earn a living. If you have any questions about this bill, please don’t hesitate to contact my Capitol office. Thank you and God bless.