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MissouriHB1992025 Regular SessionHouseWALLET

Modifies provisions relating to political subdivisions

Sponsored By: Bill Falkner (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

37 provisions identified: 15 benefits, 5 costs, 17 mixed.

Property tax relief for senior homeowners

Counties can authorize a credit for Missouri residents age 62 or older against rising taxes on their primary home. Residents must own or hold a qualifying interest in the home, live there, and owe its property taxes. The credit covers the increase over the initial credit year's tax bill, with adjustments for improvements or annexation. Only one primary home qualifies. Counties can adopt the credit by ordinance or voter approval after a petition meeting the 5% signature threshold. That threshold uses registered county voters who voted in the last governor's election.

Nearby owners can challenge nuisance properties

Owners within 1,200 feet of an alleged nuisance can sue for lost property value, court costs, and nuisance removal. This applies in counties with more than one million residents, including cities and villages within them. Qualifying neighborhood organizations can seek court orders for eligible owners or within their own boundaries. Lawsuits generally require 60 days' mailed notice to the tenant or occupant and the owner of record. Proven compliance with applicable state environmental, federal environmental, or Missouri attorney general orders is a defense; winning plaintiffs may receive legal fees.

Higher base pay for circuit clerks

Beginning September 1, 2025, annual circuit clerk base salaries are $94,330 in first-class counties. They are $90,573 in second- and fourth-class counties and $85,565 in third-class counties. First-class counties where court is held in two cities add $4,000. Pay also includes the approved annual adjustment and cannot fall below the clerk's prior-year compensation. These changes take effect only with an initial appropriation approved by the legislature and governor sufficient to fully fund them.

Higher sales tax ceiling for jails

Regional jail districts can seek voter approval for sales taxes up to 1%, replacing rate options capped at 0.5%. Revenue pays for jail services, facilities, and equipment. The law removes the September 30, 2028 expiration and the 12-month wait to resubmit a failed proposal. A county joining a district with this tax needs approval from its own voters. After approval, the tax starts there on the first day of the second quarter following the election.

Coroner pay protection and required training

Every coroner, deputy coroner, and assistant must complete at least 20 classroom training hours each calendar year. In counties without charter governments, $1,000 of authorized salary is payable only after completing qualifying training. Training providers must meet the stated state or national recognition and accreditation requirements. County coroner training costs not fully covered elsewhere are reimbursable, subject to appropriations. In those counties, the salary schedule cannot reduce coroner pay below the amount paid on January 1, 2025.

Higher emergency taxes with property offsets

Ambulance and fire protection districts can seek voter approval for sales taxes up to 1%, up from 0.5%. The law also removes the listed county exclusions. Districts must cut property-tax revenue by an amount equal to 50% of the previous year's sales-tax receipts. This is not a 50% cut to each property owner's bill. Sales-tax money can fund only the purposes voters approved.

County voters gain tax repeal process

For the county tax covered by this provision, registered voters can petition to force a repeal vote. Signatures must equal at least 10% of the county’s registered voters who voted in the last governor’s election. Majority approval ends the tax on December 31 that year; rejection leaves it in place. The county must notify the revenue department at least 90 days before repeal or termination, and remaining proceeds keep their designated uses. The department can retain 2% of post-notice collections for one year for refunds, overpayments, and dishonored checks, then return the balance and close the account.

Voters can challenge emergency district taxes

Ambulance and fire protection districts must hold a sales-tax repeal vote after receiving a qualifying petition. Signatures must come from at least 20% of district registered voters who voted in the last governor’s election. If a majority voting on repeal approves, the tax ends on December 31 that year. The law does not automatically repeal an existing tax.

Local jails gain flexibility and reimbursements

Regional jail districts can equip and maintain jails and lease district property. Their commissions can build, repair, improve, equip, or extend jails, contract with public or private entities to house prisoners, and locate jails anywhere within the district. Counties and the city not within a county receive reimbursement for qualifying local custody before correctional-center sentencing, subject to appropriation and corrections department approval. Payment is the documented daily cost or $37.50 per offender, whichever is less. Eligible custody includes specified imprisonment, revocation, fugitive, department-requested, and detention cases; sheriffs or the city chief executive must claim within two years of eligibility.

More funding support for county coroners

One dollar from each death-certificate fee goes to the Missouri Coroners’ Fund. At least $150,000 each year is designated for training, equipment, training-program aid, and training-attendance reimbursements. Coroner offices in second-, third-, and fourth-classification counties can receive grants capped at $5,000 per office annually. Remaining money can support investigation tools, office or forensic-lab space, and death investigations. Fund balances stay in the fund, replacing the former rule returning amounts above $500,000 to general revenue.

Small city boards can include nonresidents

In eligible small cities, mayoral appointees to nonelected boards can meet residency requirements by owning city property or a business. This covers fourth-class cities with fewer than 3,000 residents outside counties with more than one million residents. Utility-board appointees must also live within five miles of city limits and be utility customers. They must lack the prohibited financial, employment, or board ties to a competing utility. The utility exception does not cover boards that can set rates or issue bonds.

Land banks can buy more properties

Local land banks can acquire property through gifts, inheritance, transfers, exchanges, foreclosure, purchases, and specified tax-foreclosure processes. Purchases outside foreclosure no longer need to be next to property the land bank already owns. Acquired property must remain wholly within the county or municipality that created the land bank.

Lake communities can create entertainment districts

Counties bordering or containing part of a lake with at least 1,000 miles of shoreline can establish theater, cultural arts, and entertainment districts. Cities, towns, and villages within those counties also gain this authority. The law does not itself create a district or supply funding.

Late-report fine relief for local governments

Some local governments are exempt from the $500-per-day fine for late annual financial statements. An exemption applies with gross revenue under $5,000, fewer than 500 residents, or no sales or use tax levied or collected that year. For governments with fewer than 500 residents, previously assessed fines not paid in full are void. Governments must still file their financial statements on time.

More port sites qualify for funding

Port Trust Fund eligibility includes qualifying land owned by a city outside any county and managed by a Missouri port authority. Projects must improve commerce or transport facilities on or beside a navigable Missouri river, within port boundaries. The fund can cover no more than 80% of project costs. Projects need transportation commission approval, in consultation with public ports, and a legislative appropriation. Projects must be capable of completion within two years after approval.

State support opens for entertainment tourism

State departments can support tourism in designated entertainment districts whose applications receive economic development department approval by August 28, 2027. No appropriation is allowed before July 1, 2026. Annual appropriations are capped at $2.5 million for fiscal years ending through June 30, 2031, and $4.5 million afterward. Agreements can last up to 27 years and must limit support to part of the tax revenue tied directly or indirectly to the activity. The activity must show a projected net financial gain for Missouri over the agreement’s term.

More contracting options for water projects

Local governments can combine design and construction in one contract for water and wastewater storage, transport, or treatment projects. The Department of Economic Development cannot reject a community development block grant project solely for using this contract type. The Department of Natural Resources cannot exclude these contracts from Water and Wastewater Loan Fund consideration. Local governments must retain a Missouri-licensed engineer to help prepare documents, specifications, and evaluate proposals.

Assessment relief for tax-exempt organizations

Property owned by a federally tax-exempt 501(c) organization is exempt from the specified district special assessments, including community improvement district assessments. The exemption lasts while the property serves the organization's tax-exempt purposes. It lowers qualifying organizations' assessment costs, not household taxes directly.

Higher tax ceiling for qualifying counties

Beginning August 28, 2025, qualifying counties can seek voter approval to exceed the 1% combined sales-tax limit under this authority. The new ceiling is 1.5%, not a cap on all state and local sales taxes combined. A county must have 8,001–8,899 residents, and its county seat must have 731–799 residents. A majority of voters voting on the proposal must approve it. Revenue can fund only the purpose voters approved.

More towns can seek safety taxes

More Missouri cities and villages can ask voters to approve a public-safety sales tax capped at 0.5%. Newly eligible places include multi-county cities with 16,001–17,999 or 51,001–57,999 residents. Other additions cover villages with 431–479 residents and cities with 12,501–13,999 residents, subject to county and county-seat limits. Also eligible are county-seat cities with 8,001–8,999 residents in counties with 19,001–21,999 residents. Majority voter approval is required. Revenue funds police, fire, and emergency medical equipment, pay, benefits, and facilities, and must supplement existing public-safety funding.

Small city can seek lodging, food taxes

An eligible city can seek voter approval for a room tax up to 6% per room per night. It can also seek a food-establishment tax up to 2% of gross receipts. The city must have more than 165 but fewer than 185 residents, in a county with more than 11,000 but fewer than 12,500. The county seat must have more than 4,000 but fewer than 5,000 residents. A majority must approve the proposal at a state general or primary election. Revenue can fund emergency services and public safety, as well as construction, maintenance, and operation of capital improvements.

Coroners face stricter training requirements

County coroner candidates must show proof of qualifying death-investigation training or certification when filing to run. Accepted sources include a nationally recognized accredited credentialing organization, a training provider authorized by the law, or qualifying annual training. Elected and appointed coroners must complete required training and receive a completion certificate before taking office. Coroners without current approved training cannot attest to a death certificate’s accuracy.

Erosion work can bring property assessments

Neighborhood improvement districts can undertake river- or creek-bank erosion work even when benefits extend beyond private property owners. Districts can pay for the work through special assessments on property within the district. Property owners may face added costs while the projects address local erosion risks.

Nuisance lawsuits get new court rules

Nuisance notices can use prepaid mail instead of certified mail, with posting allowed after specified delivery problems. Notices must identify the nuisance, discovery date, location, and requested relief. A case cannot start until 60 days after required notices reach the mailing stage for occupants and owners or registered agents. A judge hears injunction cases without a jury, and plaintiffs need not prove damage or loss. Winning property owners or neighborhood groups can receive court-ordered reasonable legal fees and expenses. A dated city or county citation serves as initial evidence of whether, and how long, the cited violation existed. Owners have a defense if they prove the condition is covered by an order from Missouri’s natural resources department, the EPA, or Missouri’s attorney general, and the property complies with that order.

Vehicle valuation rules and assessment protection

Assessors must use October trade-in values from a national auto publication selected by the State Tax Commission. For unlisted vehicles, assessors use other sources they judge fairly estimate the vehicle's value. A vehicle worth less than $50,000 on January 1, 2025, cannot be assessed above its previous-year assessment. That cap applies only if the vehicle was properly assessed the previous year. The valuation method can raise or lower taxable values, while the cap protects qualifying vehicles against assessment increases.

Portable bars gain special district license

Qualified businesses in the specified entertainment district can obtain a portable-bar liquor license for $300 annually. Sales run from 6:00 a.m. until 3:00 a.m. the next day Monday–Saturday, and until 1:30 a.m. the next day Sunday. The district must combine entertainment venues, bars, nightclubs, and restaurants in a city with more than 1,900 but fewer than 2,150 residents. Its county must border or include a lake with at least 1,000 shoreline miles; the city must also lie partly in a county with more than 22,000 but fewer than 25,000 residents and a county seat with more than 100 but fewer than 500. Applicants must meet liquor-control requirements; license holders control sales locations and times and are responsible for violations at portable bars and common areas. They must distinguish minors from legal-age buyers when applicable; marked drinks can move among licensed establishments and common areas but cannot leave the district.

Counties get new financial disclosure rules

First- through fourth-classification counties must publish annual financial statements by June 30, replacing the first-Monday-in-March deadline. Statements cover the prior year ending December 31; records remain open for inspection for five years. Newspapers can request the underlying data electronically for free. Publication charges cannot exceed the newspaper’s regular local classified rate offered 30 days before publication, and payment follows proof of publication. After July 1, county commission pay warrants cannot be paid or entered for protest until the treasurer receives the state auditor’s notice that proof was filed. The law removes the treasurer’s former express bond liability for early payment.

Entertainment districts gain policing, not taxing

Community improvement districts designated as entertainment districts cannot impose their own taxes; other authorized governments can still tax within them. These districts can hire and train state-certified peace officers to enforce laws and district rules inside their boundaries. Those rules can cover curfews, unaccompanied minors, public spaces, vehicles, and safety; the founding petition can limit this authority. In a city not within a county, qualifying downtown or central-business entertainment districts covering at least 100 acres are exempt from the majority-of-owners signature requirement. The area must combine entertainment venues, and petition signers must still own more than half its assessed property value.

Road district must hold dissolution vote

The specified special road district must place dissolution on the ballot no later than the November 2026 general election. Its county must have more than 15,700 but fewer than 17,600 residents. The county seat must have more than 4,210 but fewer than 6,000 residents. If voters approve dissolution, the county takes over the district’s duties and outstanding obligations.

County planning hearing notices move online

County planning boards must post website notices before hearings to adopt, change, or extend a county master plan. This replaces physical notices posted at least 15 days ahead in two conspicuous places in each township. The separate newspaper notice requirement remains at least 15 days before the hearing.

Courts can oversee vacant nuisance buildings

Eligible local governments can pass ordinances letting building officials ask a circuit court to appoint a receiver for vacant nuisance buildings. A receiver can repair or demolish the building, or arrange its sale; the large-county authority requires a qualified buyer. This authority covers counties with more than one million residents and cities or villages within them. It also covers home-rule cities with more than 160,000 but fewer than 200,000 residents, or more than 71,000 but fewer than 79,000. The building must be both vacant and a nuisance, and the local government must first approve an authorizing ordinance.

More neighborhoods gain nuisance lawsuit tools

Nuisance lawsuit tools extend to home-rule cities with more than 160,000 but fewer than 200,000 residents, or more than 71,000 but fewer than 79,000. Neighborhood groups must meet nonprofit, purpose, geographic-boundary, and board-residency requirements. Nuisance grounds include reduced nearby property values, harm to neighbors’ health, safety, security, or welfare, and interference with peaceful property use. Housing nonprofits can qualify for the related legal process through a housing-services contract with any city during the five years before filing. The nonprofit must be following that contract or have completed it.

Cities gain mineral-spring project financing options

Third-class cities can acquire, build, maintain, and operate mineral springs, wells, related facilities, and other properties for the listed statutory purposes. The law removes former restrictions against increasing city debt or using general or special tax revenue for these projects. Cities gain financing options, while public debt and tax money can now support these projects.

Counties gain sports authorities and matching funds

A county with more than 230,000 but fewer than 260,000 residents can create a five-commissioner sports complex authority by governing-body order. Certified copies go to the governor and secretary of state; the authority can develop, maintain, or operate sports, convention, exhibition, or trade facilities. A qualifying county sports fund can receive up to $3 million annually in state general revenue, subject to annual appropriation. The county must contribute at a $3 million annual rate before state money is spent and adopt required procurement rules. The county or authority must sign a contract or lease on or after January 1, 2026, with an NFL-, NBA-, NHL-, or Major League Baseball-affiliated team. Monthly state transfers can continue for 40 years, but cannot exceed county contributions or $3 million per fiscal year per fund.

Governments gain lasting design-build contracting options

The Office of Administration can use design-build contracts for noncivil projects over $7 million. It can also contract for no more than five noncivil projects under $7 million each fiscal year. Advertising, selection, and award rules apply. Eligible local governments retain design-build authority beyond its former September 1, 2026 expiration, using qualifications, technical proposals, and construction-cost proposals. Local rules also cover a design criteria consultant, public notice, evaluation, bonding, and licensed design professionals; metropolitan sewer districts and specified governments with their own processes are excluded.

Public property protections allow private-project liens

Political-subdivision buildings and lands, including courthouses, jails, public offices, and burial grounds, are protected from court attachment and execution. A subdivision can consent to construction liens on a project intended mainly for private lease and nongovernmental use. Consent must be written, identify and legally describe the property, and be signed and acknowledged by an authorized official. It must be recorded with the county recorder of deeds. The property then becomes subject to mechanics’ lien law as though privately owned.

Sports projects can receive sales-tax revenue

Approved regional sports facility projects can receive up to 50% of estimated added state general-revenue sales taxes from project-area businesses. The added receipts must come from operation of the facility. The economic development director and administration commissioner must approve the authority’s application, and the legislature must appropriate the money. The county must impose the maximum tax rate authorized by the governing statute. Eligibility lasts no longer than 20 years after project completion.

Sponsors & Cosponsors

Sponsor

  • Bill Falkner

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 510 • No: 59

House vote • 5/15/2025

House Adopts - SS#2 SCS as amended

Yes: 136 • No: 16 • Other: 3

House vote • 5/15/2025

Truly Agreed To and Finally Passed

Yes: 134 • No: 16 • Other: 3

House vote • 5/14/2025

Reported Do Pass

Yes: 6 • No: 1

Senate vote • 5/13/2025

Emergency Clause Defeated

Yes: 15 • No: 14

Senate vote • 5/13/2025

Third Read and Passed with Amendments - SA 1 and SA 2 adopted

Yes: 25 • No: 7

Senate vote • 5/12/2025

Motion to Reconsider Adopted - SS SCS, as amended

Yes: 26 • No: 5

House vote • 4/14/2025

Third Read and Passed

Yes: 147 • No: 0

House vote • 3/13/2025

Reported Do Pass

Yes: 8 • No: 0

House vote • 3/6/2025

Reported Do Pass

Yes: 13 • No: 0

Actions Timeline

  1. Delivered to Secretary of State (G)

    7/10/2025House

  2. Approved by Governor (G)

    7/10/2025House

  3. Delivered to Governor

    5/30/2025House

  4. Signed by President Pro Tem

    5/30/2025Senate

  5. Signed by House Speaker

    5/29/2025House

  6. House Message

    5/22/2025House

  7. Truly Agreed To and Finally Passed - AYES: 134 NOES: 16 PRESENT: 3

    5/15/2025House

  8. House Adopts - SS#2 SCS as amended AYES: 136 NOES: 16 PRESENT: 3

    5/15/2025House

  9. Taken Up

    5/15/2025House

  10. Reported Do Pass - AYES: 6 NOES: 1 PRESENT: 0

    5/14/2025House

  11. Voted Do Pass

    5/14/2025House

  12. Executive Session Completed

    5/14/2025House

  13. Referred: Fiscal Review

    5/13/2025House

  14. Reported to the House with... - SS#2 as amended

    5/13/2025House

  15. Emergency Clause Defeated - AYES: 15 NOES: 14 PRESENT: 0

    5/13/2025Senate

  16. Third Read and Passed with Amendments - SA 1 and SA 2 adopted AYES: 25 NOES: 7 PRESENT: 0

    5/13/2025Senate

  17. SS#2 Adopted

    5/13/2025Senate

  18. Taken Up

    5/13/2025Senate

  19. Placed on Informal Calendar - SS#2 SCS, SA 1 and SA 2 adopted, pending

    5/13/2025Senate

  20. Taken Up

    5/13/2025Senate

  21. Placed on Informal Calendar

    5/12/2025Senate

  22. SS#2 Offered

    5/12/2025Senate

  23. SS Withdrawn

    5/12/2025Senate

  24. Motion to Reconsider Adopted - SS SCS, as amended AYES: 26 NOES: 5 PRESENT: 0

    5/12/2025Senate

  25. Taken Up

    5/12/2025Senate

Bill Text

  • Truly Agreed

    5/15/2025

    PDF

  • Perfected

    4/9/2025

    PDF

  • Committee Substitute

    3/6/2025

    PDF

  • Senate Substitute

    3/6/2025

    PDFPDF

  • Introduced

    1/8/2025

    PDF

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