How Does Personal Property Tax in Missouri Work?

In Missouri, local governments levy a personal property tax each year. This tax applies to the value of personal property owned by residents and businesses as of January 1st. The revenue generated is a funding source for community services like local school districts, fire and ambulance services, libraries, and other public works. Understanding this tax is important for anyone residing in the state.

Identifying Taxable Personal Property

Taxable personal property covers many common assets. The most frequently taxed items include motorized vehicles like cars, trucks, and motorcycles, as well as recreational vehicles (RVs), boats, trailers, and aircraft. For agricultural purposes, taxable property includes livestock and farm machinery. Business machinery and equipment are also subject to this tax.

Certain property is exempt from this tax. Real property, such as land and buildings, is taxed separately. Everyday household goods, furniture, and personal clothing are not considered taxable. Intangible assets, like stocks and bonds, are also not subject to the personal property tax.

The January 1st ownership date determines your tax liability for the entire year. If you own a taxable item on that day, you are responsible for the tax even if you sell the item or move out of state later. Conversely, if you purchase a vehicle on January 2nd, you will not owe personal property tax on it until the following year, as the tax is not prorated.

The Annual Declaration Process

Each year, residents must report their taxable personal property to the county assessor on a “Personal Property Declaration Form,” which is mailed in early January. You must review the form, make any corrections, add new property, and return it to the assessor’s office. Filing the declaration is required even if you have no changes from the previous year.

For vehicles, you will need the Vehicle Identification Number (VIN), year, make, and model. If you do not receive a declaration form in the mail, you can download one from the county assessor’s website or contact the office to obtain a copy.

The deadline for filing the declaration form is March 1st in most counties, though some jurisdictions may have a later deadline like April 1st. It is best to confirm the date with your local assessor. Failing to file on time can result in penalties calculated as a percentage of your property’s assessed value.

Assessment and Tax Billing

After you submit your declaration, the county assessor determines your property’s value. The assessor uses standardized guides, like the NADA guide for vehicles, to establish the market value as of January 1st. This market value is then used to calculate the “assessed value.”

The assessed value is a percentage of the market value set by state law. For most personal property, including vehicles, the assessment rate is 33.33%. Farm machinery and livestock are assessed at 12%, and historic vehicles are assessed at 5%. The assessor multiplies the market value by the appropriate rate to find the assessed value.

This assessed value is multiplied by the local tax rate, or levy, to determine your final tax bill. County collectors mail the official tax bills to property owners in November, and the payment is due by the end of the year.

Paying Your Tax Bill

When you receive your tax bill in November, you have several payment options. Most county collectors accept payment:

• Online through their official web portals
• By mail with a check or money order
• In person at the collector’s office
• At designated payment drop boxes in some jurisdictions

If you mail your payment, its timeliness is determined by the U.S. Postal Service postmark.

The deadline for paying your personal property tax without penalty is December 31st. Payments made after this date will accrue interest and late fees. Failure to receive a tax bill does not excuse the obligation to pay on time, so if you have not received a bill by early December, you should contact your county collector’s office.

Proof of personal property tax payment is linked to vehicle registration in Missouri. When you renew your license plates, the Department of Revenue requires you to present a paid personal property tax receipt from the previous year. New residents or those who did not own property on January 1st of the prior year may be eligible for a “Statement of Non-Assessment” from the assessor’s office, which serves the same purpose for registration.