Who sets the property tax rates in Missouri?

The correct answer is that local governments, with oversight from the state, are responsible for setting property tax rates in Missouri. This system reflects the decentralized nature of property tax authority within the state. Local governments, such as counties, cities, and school districts, primarily determine property tax rates based on their specific funding needs for services such as education, public safety, and infrastructure.

While local governments have the authority to set these rates, they must comply with state laws and regulations, which act as an oversight mechanism to ensure that property tax assessments and rates are equitable and compliant with the law. This oversight may include limitations on how much local governments can raise taxes each year, requiring approval from voters for some increases, and ensuring adherence to state constitutions and statutes related to taxation.

In contrast, the other options suggest either a centralized approach by the state government or involvement by federal authorities, neither of which aligns with how property taxation is structured in Missouri. County legislatures alone are not solely responsible for setting rates, as they are part of the broader framework involving various local entities. Thus, the collaborative effort among local governments, coupled with state oversight, underscores the method by which property tax rates are established in Missouri.