Missouri Constitution Article X - Taxation
Missouri Constitution – Article X: Taxation deals with the state's authority and procedures related to taxation. Here's a summary of its key provisions:
Overview of Article X – Taxation:
Article X of the Missouri Constitution lays out the structure, limitations, and guidelines for the collection and administration of taxes within the state. It includes provisions to protect taxpayers, regulate taxing authority, and ensure accountability in public revenue.
Key Sections & Highlights:
General Principles (§1–§3):
§1: Taxes may be imposed for public purposes only.
§2: Taxes must be uniform within each class of property, and property must be assessed for taxation at its value.
§3: Certain types of property (like public property, places of worship, and some charities) are exempt from taxation.
Assessment and Valuation (§4–§6):
§4: The State Tax Commission oversees the assessment process.
§5: Details the methods for determining fair market value.
§6: Specifies which properties can receive partial exemptions (e.g., certain veterans or the elderly).
Local Taxation and Levy Limits (§7–§11):
Limits are imposed on property tax rates for cities, counties, and school districts unless voters approve increases.
Special rules exist for debt service levies.
Revenue and Tax Collection (§12–§14):
Describes how revenues must be deposited and allocated.
Encourages prompt and proper use of tax proceeds.
Hancock Amendment (§16–§24):
Added in 1980, this is a significant section:
Limits state revenue growth to a formula based on personal income growth.
Requires voter approval for new or increased taxes, licenses, or fees.
Prohibits unfunded mandates on local governments.
Requires refunds if revenues exceed the constitutional limit.
Miscellaneous (§15 & §25):
§15: Taxation rules for railroads and utilities.
§25: Allows limited tax increases in certain emergencies without a vote.
Importance of Article X:
Establishes fairness and uniformity in taxation.
Ensures voter control over new taxes or fees through the Hancock Amendment.
Protects local governments from unfunded mandates.
Acts as a check on government spending and revenue collection.
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