In an ongoing debate that targets the wallets of homeowners across Missouri, County Executive Steve Ehlmann has pledged his support for a property tax freeze measure, albeit with a few reservations. The policy in question, which would halt tax hikes on real estate property for homeowners, mirrors a similar initiative that was greenlit for senior residents two years prior. During a recent Special Interim Missouri House Committee held yesterday, Ehlmann weighed in on the issue with his usual blend of advocacy and admonition.
Ehlmann's comments come on the heels of the state legislature's action in June, with Senate Bill 3 sailing through during a special session. The bill lays the groundwork for county voters, specifically those in St. Charles, Jefferson, Franklin, Lincoln, and Warren counties, to graduate towards a fiscal standstill concerning the tax liability of their main residences. However, not all residents will reap the offered benefits, as the proposed freeze would not extend to homeowners in St. Louis City and St. Louis County. In a statement obtained by St. Charles County Government's official website, Ehlmann argued for inclusivity, saying, "I’m for the freeze, but the legislature needs to make it available to everyone in the region." He stressed the potential demographic shift, foreseeing an exodus to counties with a frozen tax if the legislature neglects encompassing all surrounding areas.
The purported exodus is rooted in the disparity that the proposed freeze would create among neighboring counties. This is an issue that concerns Ehlmann, as he cautioned against the possibility of frozen tax constituencies later leveraging their vote power to hike other types of taxes, such as sales tax, effectively stifling local businesses. Stepping from the general into the specific, Ehlmann's own turf, St. Charles County, has maintained a zero percent real property tax rate for its general fund for decades, translating to a mere 5.6% contribution from property taxes to the county budget. St. Charles has also managed to navigate through a two-year period with stagnant personal property tax revenue growth, a voluntary stalemate triggered by a spike in used car values.
In response to the enactment of Senate Bill 3, which is slated to go into effect on September 9, Ehlmann has proceeded to file a bill expected to be introduced to the County Council on August 25. The bill's passage appears imminent, poised to place the tax freeze issue before county voters in April 2026. Ehlmann's administration, foreseeing the associated costs of such a ballot initiative, has sought an increase of $150,000 in the upcoming budget to fund the electoral proceedings. The county, adhering to the state's Hancock Amendment which scoffs at "unfunded mandates," anticipates reimbursement from the state for these expenses.
Notwithstanding his endorsement of the tax freeze, Ehlmann simultaneously flagged the existing legislation for its selective applicability and for igniting constitutional scrutiny. "This is the type of property tax relief that voters deserve and I’m for it," Ehlmann stated, according to St. Charles County Government's website. He noted the current legal challenge over the bill's discriminative nature against voters in certain counties, pointing to a need for legislative refinement to preclude a potential invalidation by the courts post-adoption.
