Clay County Presiding Commissioner Jerry Nolte released a statement regarding the Clay County Commercial Property Surtax Rate. The information is an explanation which he said was intended to be brief, providing citizens with a fundamental idea of what will come before the County Commission for discussion.

From Commissioner Nolte:

Thank you for your interest in County Commercial Property Surtax rate. As we discussed here is some basic information about the surtax tax which you requested.

Clay County’s Property Surtax rate on businesses is $1.59 per $100 of assessed value, the third highest in Missouri behind St. Louis & St. Louis County. Platte County’s rate $.36, nearly five times higher, placing Clay County and our businesses at an obvious competitive disadvantage. Noteworthy, Jackson County’s rate at $1.44 is significantly lower. This raises serious questions of inequitable taxation that unfairly impacts Clay County businesses and citizens.

The Property Surtax was adopted in 1985 as a replacement for the inventory tax and was intended to be revenue neutral. The Surtax is exempt from the Hancock Amendment which is a Missouri Constitutional safeguard to protect taxpayers by limiting higher taxes without a vote of the people. As a result, taxes collected over the past 37 years has increased at a rate greater than other taxes generating an estimated $17.8 million dollars in 2022.

The tax impact of increasing taxes effects brick and mortar facilities like apartment buildings, retail businesses, restaurants, warehouses and manufacturing, which are under increased economic stress. Many of these businesses create entry level employment for people in our community. This tax is passed on to consumers contributing to escalating rents and higher prices.

Any changes to this tax rate must be brought to a vote of the people. I have worked with County Auditor Victor Hurlbert, County Assessor Tracy Baldwin, County Treasurer Bob Nance and others both inside and outside government to create a draft of ballot language for consideration, included below. If passed by the people, this would reduce the tax rate by half over the course of five years.

This explanation is intended to be brief, providing you with a fundamental idea of what will come before the County Commission for discussion. Please feel free to reach out to me for more details. We look forward to your input and opinions.

Proposed ballot language:

Shall the commercial surtax of $1.59 per $100 assessed valuation—levied on all property in subclass 3 of class 1—be reduced in Clay County over five years to $0.80 per $100 assessed valuation, according to the following phased schedule?

$1.44 per $100 assessed valuation in 2023

$1.28 per $100 assessed valuation in 2024

$1.12 per $100 assessed valuation in 2025

$0.96 per $100 assessed valuation in 2026

$0.80 per $100 assessed valuation in 2027

KPGZ News - Jim Dickerson contributed to this report