HCS/SS/SCS/SB 960 - This act makes technical clarifications to various provisions of the property tax law that were changed in HB 1150, et. al. (2002). The act clarifies that the inflationary growth factor allowed to be applied for each class or subclass of property upon reassessment may differ among such types of property. The limit for growth will be equal to the actual assessment in such class or subclass. However, the net limit for the political subdivision will still be the C.P.I., or 5%, as set by the Constitution.

The act prevents the roll-back calculation of the rates for the four classes of property from causing a "roll-up" of the personal property tax rate.

The act clarifies that when a rate must be revised-up to hold the political subdivision harmless after making the above calculation, such revision will be weighted based on the relative assessed valuation of the class or subclass of property. The act further describes this calculation.

The act requires that all existing and any future rules or forms interpreting the rate calculation in Section 137.073 must be promulgated by rule and not incorporated into a rule by reference.

The act allows the City of Saint Louis and counties other than Saint Louis county to opt-out of the provisions of HB 1150 (2002). Current law makes these provisions effective statewide January 1, 2005. This act moves the effective date to October 1, 2004, but then allows an opt-out provision before January 1, 2005. Once the provisions of HB 1150 are implemented in a county in a year of general reassessment, the county cannot opt-out. Any county that does opt-out may opt-in at a later date. If a political subdivision lies on the border of two or more counties, and one of those counties has opted out without the others doing so, the governing body of the political subdivision will certify separate rates for the portion of political subdivision in the county that has not opted out and a single rate for the other portion of the political subdivision in the other county.
JEFF CRAVER