Texas County voters consider property tax cap that could affect schools

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For the first time under a new state law, Texas County residents will have the chance Nov. 4 to vote on a measure that would cap property tax increases on primary homes – a decision that could provide relief for homeowners while reshaping revenue for local schools. 

The measure is in response to Senate Bill 3 (SB3), which was signed by Gov. Mike Kehoe in June. Eligible taxpayers would receive a real property tax credit equal to the difference between the real property tax liability in a given year and the year they became an eligible taxpayer. In Texas County, the real property tax liability on an eligible taxpayer’s homestead cannot be increased above the liability incurred during the initial credit year. 

“Citizens should be able to have a say in how their tax dollars are spent,” said state Sen. Brad Hudson, R-Cape Fair, a proponent of the legislation. “That includes how much they are paying in taxes.” 

The bill requires several counties to put the issue before voters before the April 2026 election. Texas County is one of the first. 

“SB3 required a vote to be put before the people in all seven of the counties I represent that would allow them to freeze their property tax liability at the 2024 level,” said Hudson. “I commend Texas County for being the first of the counties in District 33 to take the first step and put the property tax issue on the ballot.” 

State Rep. Bennie Cook, R-Houston, has also been supportive of the measure. “This is another step toward giving homeowners relief from property taxes,” said Cook.

While the measure has potential benefits for some community members, local school districts that rely on the taxes could be strained by the decision. 

“Because local property taxes are a major source of school funding, limiting future tax growth could reduce the district’s ability to maintain programs, staffing and facilities over time,” said Justin Copley, superintendent of Houston Schools. 

The Missouri school funding formula assumes districts maintain their local tax base, and the taxes make up a significant portion of operating revenue, according to Copley. 

A decline in the tax base could result in fewer funds available for day-to-day operations, reduced capacity to match state aid and long-term strain on the district’s ability to recruit staff and maintain facilities without additional voter-approved levies. 

“For our counties and schools that are concerned about funding, it is important to remember that this legislation applies only to primary residences that go through no improvements,” said Hudson. “Vacation homes, homes that receive improvements or additions, new construction and homes that are sold will still be subject to increased liability.”

Copley says that the Houston R-1 School District remains neutral on the measure, but encourages voters to consider both the immediate benefits and the potential long-term impact on local schools and students. 

In late September, six school districts, two individual taxpayers and a fire protection district filed a lawsuit contesting the law. The suit argues that it creates unequal property tax rules among other concerns. 

ROAD AND BRIDGE QUESTION

In addition to the real property tax question, Texas County voters will also have the option to replace an expiring county-wide half-percent capital improvements sales tax with a similar half-percent tax on retail sales, including utilities, dedicated to maintaining and improving the county’s transportation infrastructure. The current tax, approved by voters in 2005, helped finance the construction of the Texas County Justice Center and is set to expire in March 2026.

“In large part, these funds will be distributed to needs and priorities as determined by the townships,” said Presiding Commissioner Scott Long. “A smaller portion will be used to leverage matching grant funds to increase the effectiveness of tax dollars.”

Ballot language states that renewing the tax would provide a more stable funding source for townships to repair and replace aging roads, culverts and bridges. Estimates suggest the tax could generate roughly $1 million annually, and proponents note that pooled county resources may allow access to matching grants for infrastructure projects that individual townships cannot pursue alone. There are 17 townships in the county.