Attorney General's News Release

July 7, 1999

Nixon fights for lower taxes for Missouri farmers

Jefferson City, Mo. — Attorney General Jay Nixon today filed a notice of appeal with the Missouri Supreme Court, asking the high court to reverse a Cole County Circuit Court ruling that could cost Missouri farmers millions of dollars in property taxes. The lower court issued its ruling on June 1 in Missouri Growth Association v. State Tax Commission.

"This is a matter of great importance to the farmers and to the Missouri legislature," Nixon said. "The Missouri constitution gives the legislature the authority to make taxing choices, and I respect and support their decision not to increase farm taxes at this particular time, when the farm economy is hurting and commodity prices are low."

Nixon, who is seeking a ruling from the Supreme Court before tax bills are mailed out in the fall, said he will also seek a stay of enforcement from the Supreme Court so county officials will not have to redo the assessment process while the case is on appeal.

In 1998, the legislature rejected by resolution the State Tax Commission's proposed increase in agricultural land values. State law gives the legislature final approval of any increase in agricultural land value, Nixon said. The lower court's ruling, if left unchallenged, could require the State Tax Commission to increase land values by about 13 percent.

The lower court ruled that the resolution rejecting the farm tax increase was invalid because it amended a law and was not read on three different days in each house of the legislature. In addition, the court said that legislative involvement in this process violates the separation of powers clasue of the Missouri constituion, even when the governor agrees.

"This could result in farmers paying an additional $5 million to $10 million annually in property taxes, despite the expressed rejection of the legislature and the governor," Nixon said.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818