Missouri Property Tax Update Archive
Updated December 2014
Keep an Eye on Your 2015 Assessment
January 1, 2015 is the valuation date for the 2015-2016 assessment cycle in the State of Missouri. 2015 is particularly sensitive since the government agencies are low on funds and will look to the Assessors to help with the situation. Owners of income producing properties in the State of Missouri should give careful attention to the valuation date to be certain they are in position to document income and expenses for ad valorem tax purposes. There is a strong likelihood commercial Missouri properties will suffer an increased assessed value. Owners should carefully monitor the 2015 assessment and be prepared to seek review.
The Assessors may not complete their County assessments until later in the year, so owners should be prepared in advance to pursue an appeal from the Assessor’s opinion of value.
Jerome Wallach
The Wallach Law Firm
American Property Tax Counsel (APTC)
Updated June 2012
St. Louis County, Missouri Log Jam
Many owners of property in St. Louis County, Missouri have been awaiting results from the Missouri State Tax Commission on appeals filed challenging the Assessor's value of their property during 2004-2010. The 4,800+ appeals which languished as a result of the heavy work load of the Commission now have been addressed in an Order setting a schedule and a methodology to resolve them. Given the large number of appeals, and that each appellant is entitled to a hearing complete with appropriate discovery, motions, etc. the resolution schedule has a long future. It provides for a series of hearings to be conducted every Tuesday proceeding at the rate of two hearings per day until completion. With the volume of appeals pending, this schedule will not be exhausted to final resolution of all cases until approximately 2062. The formula for resolution promulgated by the Chief Hearing Officer of the Commission will begin, on January 29, 2013.
Jerome Wallach
The Wallach Law Firm
American Property Tax Counsel (APTC)
Updated December 2010
Property Tax Planning
As the 4 th quarter of 2010 begins, it is time for Missouri property owners to plan for the forthcoming year. 2011 is the first year of the two-year cycle of valuation of properties for ad valorem purposes. January 1 is the determinant date of value which will hold for 2012. It is important in Missouri to assure that appeals from the Assessor’s opinion of value are submitted in the odd numbered year. The year end review of the performance of income producing properties can provide the basis for the determination of whether an appeal is warranted. Once the year end numbers are put together the net operating income for ad valorem tax purposes can be determined. The applicable NOI excludes real property taxes and debt service even though these are shown as expense items on most income and expense statements. Adding back those items to the income stream and applying an appropriate capitalization rate will give some indication of value short of a full appraisal report. This exercise will provide an indication of whether or not an appeal is warranted.
UPDATED DECEMBER 2009
Appeal Deadline Confusion Reigns
In an effort to achieve consistency concerning filing deadline dates for appeals to the County Boards of Equalization, the Missouri legislature may have created more confusion than it abated. Recent legislation (Senate SB 711 (2008)) designates the 2nd Monday in July the Board of Equalization appeal date for non-first class counties and St. Louis City but did not amend Section 137.385 RSMo controlling the date for appealing in first class counties. The deadline for appealing to the Board of Equalization in first class counties remains "before the 3rd Monday in June." The books aren't delivered to the Clerk until July 1.
The prudent course is to appeal prior to the 3rd Monday in June though the assessor's values may not be known. SB 711 attempts to allow political subdivisions until October 1 to set levies. There remains an unchanged provision in 67.110.1 RSMo setting levies by September 1.
This confusion can be viewed by accessing the Missouri State Tax Commission's website which includes a real property assessment timeline.
Updated June 2009
Boe Filing Deadline Confusion in Missouri
In Missouri, new Section 137.275 RSMo. provides that any aggrieved property owner may file an appeal with the county board of equalization on or before the second Monday in July. That would seem clear except that Section 137.385 provides appeals to the county board of equalization shall be filed before the third Monday in June; "provided that the board, in its discretion, may extend the time for filing such appeal."
The counties that have purported to extend the time for filing an appeal for 2009 are: St. Louis City, St. Louis County, Greene County, Jefferson County, St. Charles County, Jackson County as well as miscellaneous other smaller counties. As to those urban counties, and a few others, a filing date of the second Monday in July (July 13, 2009) seems appropriate, even though it appears to run afoul of the June 15, 2009 filing deadline in Section 137.180. The county board of equalization is deemed by law to be an agency of the county. Promulgation of a filing date of the second Monday in July, which is authorized by at least one statutory section, should be relied on as being timely.
Updated September 2008
Year's End; Taxes Due
Property owners in Missouri should be receiving their tax bills, within the next several weeks. Some will suffer sticker shock at the amount of the bill. Others may have appeals pending or have already sought relief through the appeal process. If an appeal is currently pending before the State Tax Commission it is required that taxes paid (due December 31, 2008) be accompanied by a protest letter. The letter should be attached to the check. For property owners who do not have appeals pending, nothing can be done about the 2008 bill. However, 2009 will be a reassessment year in Missouri setting the value of the property for tax purposes for the two year cycle. Missouri counties may have different appeal dates. Property owners should be reviewing their property values to determine if an appeal is warranted. Owners should be alert for possible notices of increase in valuation by the Assessor for 2009.
Updated December 2007
Be Safe, File A 2008 Appeal
Pending Missouri real property tax appeals for the 2007 assessed value are considered an appeal also for the year 2008. However, given the vagaries of the system, the prudent course of action is to file an appeal for the year 2008 also. Missouri is on a two year cycle with the valuation date being January 1 of the odd numbered year. If no appeal was filed for the particular property for the year 2007, an appeal should be filed for the year 2008. The standard for the 2008 assessed value will be the value of the property under the economic conditions existing as of January 1, 2007. A simple way to look at it is to file a timely appeal for 2008 whether or not an appeal was filed for 2007 recognizing that the January 1, 2007 value will control the assessment level.
