The Missouri Legislature recently passed Senate Bill 3 (SB3), a broad and complex piece of legislation that is now headed to the Governor’s desk for signature.

While much of the attention surrounding SB3 has focused on incentives to keep the Kansas City Chiefs and Royals in Missouri, a lesser-known section of the bill could have significant and long-lasting implications for local communities, especially public school districts like Cassville R-IV.

Included in SB3 is a provision requiring 97 Missouri counties to place a question on the ballot, no later than April 2026, asking voters whether they support a property tax credit for homeowners on their primary residence. This credit would be applied after taxes are calculated, effectively reducing the amount owed by eligible taxpayers.

However, the structure and scale of this tax credit varies by county. Counties will fall into three different categories under SB3, depending on the decisions made by their state senators:

• 5% Counties: Homeowners in these counties would see their property tax increases capped at no more than 5% annually or the rate of inflation (Consumer Price Index), whichever is higher.

• 0% Counties: Homeowners in these counties would have their property taxes frozen at 2024 levels, regardless of future increases in assessed value or tax rates.

• No-Change Counties: Some state senators chose not to opt their counties into the property tax credit program at all, meaning taxpayers in those counties would see no change to the way property taxes are calculated today.

One of the most unusual aspects of SB3 is that each Missouri state senator was given the authority to determine how the counties in their district would be classified. This means that different counties across the state will experience different impacts based solely on the decisions of their respective senators.

In our case, Sen. Mike Moon, who represents Barry, Lawrence, Christian, and Stone counties, chose to designate all four of his counties as 0% counties. This means that, pending voter approval next April, homeowners in Barry County could see their school-related property taxes, and all other local property taxes on their primary residence, frozen at the amount paid in 2024.

This approach is significantly different from counties that will allow a 5% cap or no change at all, and it creates unique financial planning challenges for local taxing entities, especially public school districts and fire districts.

Cassville R-IV, like most school districts in Missouri, depends heavily on local property tax revenue to fund critical operations, such as teacher salaries, transportation, extracurricular programs, building maintenance and more. If a significant portion of our local tax base becomes frozen, it may limit our ability to keep up with rising costs, inflation and the growing needs of our students. It’s important to note that under SB3, taxing jurisdictions like school districts would still assess taxes under the normal process, but eligible homeowners would receive a credit against their final bill.

The law does not allow districts to increase tax levies to make up for this lost revenue, unless such an increase is approved directly by voters.

It’s also worth highlighting just how unusual it is for legislation of this magnitude to be passed so late in the year. Typically, school districts begin summer planning with a clear understanding of policy changes coming out of the regular legislative session. This year, however, we’re working to interpret several major decisions being made during special sessions and extended debates, many of which carry significant financial implications for public education.

Districts across Missouri, including ours, are doing their best to stay on top of these changes and prepare responsibly for the 2025-2026 school year. While we always strive to be efficient and proactive with taxpayer funds, sudden policy shifts like these add an extra layer of uncertainty to the planning process.

While SB3 may introduce financial uncertainty for public schools, I want to be clear that this is not a time to panic. We still have until April 2026 before this ballot measure would go before voters, and many implementation details remain unclear.

There is time to work with local and state leaders, provide input, and seek solutions that ensure public schools are not placed in a financially vulnerable position. I remain hopeful that level heads will prevail, and that state leaders will work with communities and school districts to protect the long-term interests of Missouri students.

I encourage community members to stay informed. Ask questions. Engage with our state legislators. Understand the short and long-term impacts that this legislation might have, and be prepared to make informed decisions next April.

Cassville R-IV will continue to work with our local, regional, and state partners to advocate for the needs of our students and staff. We are committed to transparency, stability, and providing the high-quality education that our community expects and deserves.

I will continue to provide updates in future articles as additional information becomes available. In the meantime, please don’t hesitate to reach out to me directly with any questions regarding SB3. I can be contacted by phone at 417847-2221 or via email at mjohnson@ cassville.k12.mo.us.

Merlyn Johnson is the superintendent of the Cassville school district. He may be reached at mjohnson@cassville.k12. mo.us.