Missouri lawmakers may consider changing a law about used car tax rates. In the meantime, local jurisdictions like St. Charles County are making their own decisions.
Tonight, the County Council could pass a resolution paving the way for a lowered vehicle tax rate in the fall. It would allow car owners to pay about the same amount as last year. Without the resolution, those bills would be 20% higher.
Missouri law says to use Blue Book values for car taxes -- but now, those values have skyrocketed. Due to a shortage of new cars, used car prices are up more than 20%. County Executive Steve Ehlmann said the county is already flush with federal money right now. Plus, there's always inflation to contend with.
"With all these additional costs of inflation right now, to all of a sudden tax somebody 20% more for their used automobile -- I don't think that's good policy," Ehlmann said.
Ehlmann added that he just wants to make things consistent.
"It's such an unusual and unfair situation," he said. "If your house went up 20%, the jurisdictions would have to roll it back under the law. But if your car goes up 20%, they don't have to roll it back. Now, it doesnt mean that they can't, and that's what we're gonna do."
St. Charles County would be forgoing a $600,000 windfall for road and bridge work and 911 dispatch. But Ehlmann says the county's coffers are just fine with federal COVID relief money -- and besides, they say car owners have enough inflation headaches as it is. Districts, like school, fire and library, will have to make their own tax decisions. But the county wants the state to fix the used car rate as soon as possible.