Section 25 Exception for Voter-Approved Bond Indebtedness

• Library: Tax Law 2009

As discussed in §2.19 above, article X, § 22(a), of the Missouri Constitution requires approval by the required “majority of the qualified voters of that county or other political subdivision voting thereon” before “increasing the current levy of an existing tax, license or fees, above that current levy authorized by law or charter when this section is adopted.”

Both the language of Hancock and judicial interpretations have carved out an exception to the voter approval requirement for a new or increased “tax, license or fee” required by voter-approved general obligation and revenue bonds. The language of § 22(b) specifically provides that its limitations do not apply to taxes imposed for the payment of principal and interest on bonds or other evidence of indebtedness or for the payment of assessments on contract obligations in anticipation of which bonds are issued that were authorized before the effective date of Hancock.

Oswald v. City of Blue Springs, 635 S.W.2d 332 (Mo. banc 1982), involved a Hancock...