JEFFERSON CITY — The Missouri House gave preliminary approval Tuesday to a plan to slash the personal property tax on vehicles.
Under legislation sponsored by Rep. Richard West, R-Wentzville, the personal property tax rate would drop 50% over three years, potentially reducing tax revenues going to local governments by $909 million.
The legislation is among a number of tax cuts being promoted this year by Republicans, including proposed reductions in the income tax, corporate tax and the state’s share of the capital gains tax.
Each would reduce revenues going to state and local coffers without a clear way to replace the funding.
Currently, personal property taxes are based on a rate that is one-third of the value of the vehicle. The plan would drop the rate to 18%.
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West said local governments can replace the lost revenue by finding other taxes to raise.
“I think government spends too much money,” West said. “I guarantee if you put this on the ballot today … it would pass with 70%.”
West’s Republican colleagues are backing the proposal.
“We fought a revolution over this premise,” said Rep. Darin Chappell, R-Rogersville. “Our people back home are drowning in governmental overreach.”
“This is going to save people money if they own a vehicle,” added Rep. Brian Seitz, R-Branson. “It’s going to save everybody money.”
Rep. Mark Matthiesen, R-O’Fallon, said the current setup “punishes” people for owning a car.
“If you want to be a productive citizen and go to work, you must own a vehicle,” Matthiesen said.
But Democrats argued that it would create a significant funding gap for local governments.
“I don’t think we should defund the police,” said Rep. Michael Burton, D-Lakeshire.
“It’s defunding our roads. It’s defunding our schools,” added Rep. Mark Boyko, D-Kirkwood.
The personal property tax has been in the crosshairs of the Legislature before.
Former Sen. Bill Eigel, R-Weldon Spring, made it a key part of his unsuccessful run for governor in 2024.
Supporters say people pay a tax at the point of purchase and should not be subjected to an ongoing tax on that product.
But, the efforts have not found solid footing amid concerns that schools, hospitals and nursing homes that rely on the proceeds will have to reduce services.
“In some of our smaller communities, it could lead to a shutdown of some services,” said Rep. Kathy Steinhoff, D-Columbia.
The measure needs one more vote in the House before moving to the Senate for further debate.
The legislation is House Bill 903.
Missouri Sen. Bill Eigel, R-Weldon Spring, denounces the leadership’s decision to put his proposal to end personal property taxes on the back burner as the Legislature ends its session. Video editing by Beth O’Malley.
