Covering SB 3 & Tax Reform Efforts for Special Districts

SB 3 was passed and signed into law following the Missouri General Assembly's Extra Session in early June 2025. The law's underlying intent is to provide incentives to retain the Royals and Chiefs in the state and to provide relief to Missourians recoving from severe storms.

However, as Senators expressed skepticism of the financial impacts of retaining the two sports teams, the focus of the Extra Session was expanded to include property tax relief.

Successfully included in SB 3 was a provision that requires 97 counties to ask voters whether to institute an effective cap or freeze to real property tax bills. 

SB 3 requires 75 counties to ask voters, by the April 2026 election, whether to essentially cap real property tax bill increases at 5 percent annually or the adjustment of the consumer price index (whichever is greater). Voters in another 22 counties will be asked whether to implement an effective freeze on residential real property taxes. The baseline tax year would be 2024. SB 3 does not call for caps or freezes in the remaining 17 counties and City of St. Louis 

Voters across the impacted counties will need to vote by April 2026 on the local property tax measures – similar to SB 190’s (2023) approach to freezing seniors’ property taxes in the state.

The bill passed the Senate, 19-13, around 2:30 a.m. Thursday morning, June 5; advanced through House Committee on Tuesday, June 10; and was passed 90-58 on Wednesday, June 11. Governor Kehoe signed the legislation on June 14.

Following the passage of SB 3, Missouri House Speaker Jonathan Patterson, R-Lees Summit, announced the formation of the Special Interim Committee on Property Tax Reform.

The Interim Committee is tasked with gathering public input and evaluating possible changes to Missouri’s property tax system.

“The goal of the committee is to ensure fairness, transparency, and sustainability for taxpayers and municipalities across the state,” Patterson said in the June press release on the establishment of the interim committee.

Rep. Tim Taylor, R-Bunceton, chairs the interim committee with Rep. Kathy Steinhoff, D-Columbia, seated as vice chair.

Click here to view the committee's membership. 

The committee will hold a series of public hearings in five locations across Missouri throughout the summer, aiming to engage citizens and stakeholders.

As lawmakers explore possible reforms, leaders of Missouri’s special districts are urged to participate in these committee hearings – especially those that rely more on property taxes to provide critical funding for services such as fire protection, ambulance, libraries, roads, local health, hospital, workforce development for disabled Missourians, community development, and other community needs..

It is imperative that Missouri’s district leaders educate both lawmakers and the public about the real-world implications of property tax cuts on special district services. Doing so through respectful engagement and clear communication will be key in ensuring that any future reforms reflect the complexity and necessity of local funding structures. 

Ultimately: tax caps and freezes—though politically popular—could compromise the sustainability and effectiveness of these essential services.

Action 1: Join the Missouri Special Districts Alliance to receive the latest updates, advocacy resources, and news on legislative activity. The Alliance and its members will be prepared to address legislative actions impacting local revenue sustainability. 

Action 2: Attend a Missouri House Interim Committee on Property Tax Reform Hearing. It is crucial for special district stakeholders to attend, share concerns with current property tax reform policies, and educate lawmakers on the power of the property tax dollar to deliver local services.

District leaders and stakeholders are encouraged to let us know if they plan to attend and/or testify at a hearing. Alliance members will meet virtually for a "Hearing Pre-Meet" prior to the interim committee hearing.