Attorney General's News Release

August 31, 1999

Supreme Court ruling prevents higher farm taxes

Jefferson City, Mo. — The Missouri Supreme Court today agreed with Attorney General Jay Nixon and the Missouri Farm Bureau and reversed a lower court ruling which would have required the State Tax Commission to increase farm property taxes by 13 percent. The action by the court will save Missouri farmers an estimated $5-$10 million in property taxes annually, Nixon said.

"This is no time to be raising taxes on farmers, and I am pleased that the court ruled so expediently in this case," Nixon said.

The Supreme Court, which heard arguments on the case Aug. 18, reversed a ruling by the Cole County Circuit Court. That court's ruling ordered the State Tax Commission to file rules with the Secretary of State which would have increased farm property taxes despite the fact the legislature and the governor had rejected the tax increase.

The Supreme Court today said the tax commission cannot be compelled to adopt a specific rule and that state law gives an agency the discretion to withdraw proposed rules or regulations. The court did not rule on the constitutional validity of the legislative oversight process, noting that the commission had authority to withdraw the rule regardless of the cause of the rule's demise. The court's ruling reinforced the commission's mandate of establishing land values based on "productive capability."

The Missouri Growth Association had claimed the statutory legislative oversight process rejecting the rule was unconstitutional.

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