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15 January 2010

Keeney Files Legislation to Prevent Tax Increase for Missouri Farmers

State Rep. Shelley Keeney (R-Marble Hill) has co-sponsored legislation in response to a recent approval of new, increased productive values for taxation of farm land by Governor Nixon's State Tax Commission which would go into effect on January 1, 2011.  House Concurrent Resolution No. 3 would reject the commission's decision to increase the new values.  By successfully passing the HCR, legislators can reject the Commission's recommendation; and thereby, keep the current productivity values in place.  Both the House and Senate must approve the HCR within sixty days after the first day of session.

Missouri farmland is valued for its productivity rather than its market value.  The Tax Commission voted on December 15 to increase productivity values used in determining property tax on farmland in Grades 1-4, which includes most of the state's cropland.  The increase would be almost 29% or an average increase of 90 cents per acre.  Grades 5-7, which include pasture, the recommended productivity values would decrease by about 24%, or an average tax decrease of 20 cents per acre.

Statewide, the total value of farmland using the new productivity values and corresponding property tax paid would increase 11.5%.  I want my constituents to know that I oppose this recommendation based on today's economic climate for farmers.  I believe that failing to pass this resolution means we are failing to keep the promise of working to prevent tax increases.

The Missouri Farm Bureau is also against the Commission's change.  FB made its recommendation at the annual mid-December meeting and presented a 15-year study of average land values.  The study had been done by the University of Missouri's Food and Agriculture Policy Research Institute.

Extreme market volatility, record input cost increases combined with an unusually wet year and weak product demand equals hard times for Missouri farmers.  Governor Nixon's tax commission is recommending the exact wrong thing for Missouri's farmers and ultimately Missouri's consumers who can not afford an increase in food costs.  Farmers cannot afford a 29% increase in taxes on their property, and I will work diligently to overturn this heavy-handed tax increase.

Agriculture is an ever increasing competitive business, not only in Missouri but also the nation and certainly internationally.  Missouri's farmers have seen commodity prices fall over the last 18 months at an alarming rate, when at the same time input costs have increased to the point where farmers are leaving the business in droves.

Aside from the fact I find it wrong that a governor's administration has an authority to impose assessment on local authorities, it's astounding they would impose such an increase in today's economy.  "Now is a bad time to increase taxes on any Missourian, including our state's landowners," said Keeney.

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