OSAGE COUNTY — Gov. Mike Kehoe recently signed Senate Bill (SB) 3 into law. Prior to that, Osage County Assessor Tina Kammerich and Collector Denise Nolte addressed some concerns to the Osage County Commissioners during the June 10 commission meeting.

According to a press release from Kehoe’s office, “SB 3 ensures Missouri remains competitive in retaining major sports teams, while also delivering targeted tax relief for storm-impacted Missourians and supporting long-term economic growth. The legislation includes the following provisions:

• Show-Me Sports Investment Act: Authorizes the state to partner with professional sports teams to help finance stadium construction through bond payments and one-time tax credits with built-in protections for taxpayers.

• Tax Credits for Homestead Damage: Creates a tax credit of up to $5,000 for home or renter insurance deductibles incurred due to severe weather damage in a declared disaster area in 2025, with flexible carry-forward and transfer options.

• Tax Credits for Certain Sporting Events: Updates two different tax credit programs related to amateur sporting events in Missouri, aimed at making them easier to use and more effective at attracting and supporting sports events while making a positive impact on the state’s economy.

• Property Tax Credit: Requires certain counties to ask voters whether to freeze or modestly cap real property tax increases for eligible homeowners.”

It was the potential property tax credit that concerned Kammerich and Nolte.

“I did all my own research,” Kammerich said. “I know we’re in a 0% (bracket), so, if it passes, Osage County cannot change (anything). We cannot raise values or anything. This year was a value increase year, so I raised a lot of values. We’re working on doing the impact notices. Now, if this happens, I can no longer raise any values.”

SB 3 requires the issue be put on the ballot for voters to decide, no later than the 2026 municipal election.

If it passes, the county will be required to credit property owners the difference between current assessed homestead values and the “base year” (2024) assessed homestead values, and values can only be increased if new structures are built or if improvements are made.

The bill defines a homestead as “real property actually occupied by an eligible taxpayer as the primary residence.”

It is yet unclear whether that applies to the entire parcel, or merely the portion considered by each county to be a homestead.

It is also unclear whether the “base year” changes if the property is sold or otherwise transferred to a new owner.

Levies can still be increased to help offset lost revenue, but the bill states the total amount of credits would be considered tax revenue actually received, indicating levy ceilings for political subdivisions would not be adjusted by the state to compensate for the lost revenue.

The bill, which specifies which counties are affected and by how much, appears to mainly impact counties in Central Missouri.

“The bigger your population is, the better off you are,” Kammerich told the commissioners.

It is also important to note SB 3 dos not appear to provide a sunset date for this freeze, meaning property taxes on homesteads could potentially be frozen permanently at 2024 rates.

Presiding Commissioner Darryl Griffin said on Tuesday of this week that he believes the issue will be decided by the courts, as at least one county is challenging the legality of the bill.

Kammerich said it is currently impossible to predict how much future tax revenue will be lost if voters approve this freeze, because of the unanswered questions. She is working on obtaining a report showing how many of the county’s 11,800 parcels (verified in 2024) contain homesteads.

Nolte said the biggest direct cost to the county will come in the form of a software update necessary to show the credit on the taxpayer’s tax statement. “I will be actively getting price quotes for new software and compare it to upgrading our current software,” Nolte said. “I am sure more information will be coming forward in the next few weeks.”

District 26 State Sen. Ben Brown voted against the bill, while District 61 Rep. Bruce Sassmann voted in favor. Brown’s and Sassmann’s districts include Osage County.