American Real Estate Association warns Missouri ballot measures could raise homeownership costs

The American Real Estate Association (ARA) has aligned with the Missouri Association of Realtors and other organizations in opposition to Missouri ballot Amendments 4 and 5, scheduled for the Aug. 4 statewide vote. The ARA contends that these amendments could significantly increase homeownership costs for Missouri residents.

Amendment 5, according to the ARA, would grant the state legislature the authority to broaden sales taxes to encompass a wide array of goods and services without requiring a public referendum. The association expressed concern that this could reintroduce transfer taxes on property sales, impose new taxes on essential services, and potentially drive combined sales tax rates above 20%. These outcomes, the ARA stated, would translate to higher expenses for homeowners, prospective buyers, and real estate professionals.

Furthermore, Amendment 4 is seen by the ARA as exacerbating the risk by making it considerably more challenging for citizens to introduce initiatives on the ballot. This process has previously been utilized by Missouri voters to enact taxpayer protections. The ARA argues that the combination of both measures would empower lawmakers to raise taxes while simultaneously curtailing the public's ability to challenge or overturn such increases.

Jason Haber, co-founder of ARA, referred to Amendment 5 as the 'Everything Tax,' warning it would inflate homeownership costs and provide politicians with unchecked power to raise taxes. Mauricio Umansky, another co-founder, highlighted Amendment 4's potential to hinder citizens' ability to resist tax increases. The ARA emphasized that its stance is not about income tax policy but about defending existing voter-approved protections and the right to decide future tax matters through ballot initiatives.

Brian Jared, President of the Missouri Association of Realtors, welcomed the ARA's support, noting that Amendment 5 would increase costs for home sales and services, disproportionately affecting seniors on fixed incomes, all without a public vote. The ARA plans to support the campaign by promoting the 'no on both' message through its national network and providing financial assistance.