Jefferson City, MO – Soaring used car values can lead to higher property taxes on aging vehicles. This is driving some in the Missouri legislature to consider a measure to ease a rising tax burden.
Kelly Blue Book estimates used car prices are about 30% higher than they were a year ago. Which means the property tax bill for those vehicles may eventually be higher as well.
Missouri state Rep. Brad Hudson (R-138th) has proposed giving assessors some discretion, rather than having to use the National Automobile Dealers Association Guide for valuations.
"There's no way I would like to have that conversation, where I would sit across the table from a taxpayer and say, you know that truck that you've got? It's got more miles on it? It's a year older. I'm going to hit you with a higher assessment and you'll probably have to pay more taxes on it," said Hudson.
The NADA Guide does not account for mileage, where others like Kelly Blue Book do.
Hudson's bill passed in the House, and now heads to the Senate.