Real Property Assessments in Missouri
What to Know About Real Property Assessments in Missouri
Important Tax Definitions & More
As a homeowner, you are more than likely familiar with your property taxes, and specifically with your real property taxes. Real property taxes are calculated on odd-numbered years, also known as an assessment year. In today’s blog, we’ll break down important tax definitions for you to know, and what you need to know about real property taxes in Missouri.
Important Tax Definitions for Homeowners
The following definitions are provided courtesy of the Missouri State Tax Commission website, where you can find a full list of definitions. We’ve picked out the terms most important to be aware of below.
Ad Valorem Tax: Ad Valorem taxes are taxes that are based on the value of property. These are commonly known as property taxes.
Appraised Value: The appraised value is an estimation of the true value in money of residential, commercial, or utility property, or the productive or market value of agricultural property.
Assessment Date or Tax Date: January 1st of each year. Real property is assessed as of January 1st of each odd-numbered year. That same value will be used for the following even-numbered year, unless there has been new construction and improvement to the property. Personal property is assessed as of January 1st of each year.
In counties that adopt the Occupancy Law, newly constructed residential real property may be assessed for a portion of the year on a pro-rata basis, commencing upon the day the home is occupied. For example, if a family moves into a new home on April 1, the assessor assesses the home and the owner is taxed on 75% (eight of twelve months) of the value of the real estate for that year.
Board of Equalization: This board hears taxpayer complaints, reviews the assessments, and issues decisions either affirming or adjusting the assessments returned by the assessor.
Personal Property: Tangible property that is not real property. This includes automobiles, trucks, farm implements, boats, office equipment, machinery, and equipment.
Real Property: Real property includes the land itself and all growing crops, buildings, structures, improvements, and fixtures on the land. It also includes all rights and privileges belonging or related to the land.
True Value in Money: The true value in money is the price the property would bring after a reasonable exposure to the open market when offered for sale by a person who is willing but not obligated to sell it, and is bought by a person who is willing to purchase it but who is not forced to do so. The fair market value of the property. The true value in money of agricultural/horticultural land in actual use is defined as its productive use value. The true value in money of agricultural or horticultural land that is vacant and unused is its fair market value.
How Are Real Property and Personal Property Taxes Calculated?
To start, the market value of your property, both real and personal, must be calculated by an assessor. The market value of personal property is determined on January 1st of the current year, whereas real property, as defined above, is calculated on January 1st of odd-numbered years. The market value of your property is defined by the value the assessor believes your property could fetch on the open market if it were for sale. This value is calculated by including all of the factors of your property’s value, including location, size, condition, etc. Residential real property is assessed at a certain percentage of the market value as determined by the assessor. In Missouri, that percentage value is 19%. For example, say you had a residential property worth $150,000, the assessed value would be $28,500. Afterward, you would apply the tax levy for your specific county. For example, if the tax levy is $8.00 per $100 of the assessed value, then your tax bill would be $2,280 for your residential real property.
What Are the Deadlines For Paying or Appealing My Property Taxes?
As mentioned above, property is assessed as of January 1st, but you as a taxpaying homeowner are required to submit your personal property assessment list to your local county assessor’s office by March 1st. Then, the responsibility is placed on the assessor, who will complete their assessments, and turn them over to the county clerk. In most counties in Missouri, the deadline to appeal your valuation is the third Monday in June, hearings will then be scheduled for July. After appeals have been heard and subsequently settled, including those that make it all the way to the State Tax Commission, the tax rates must be concluded by October. Afterward, tax bills are sent out as soon as possible, and are due on or before December 31st.
Consult a Professional Tax Expert if You Believe You Should File an Appeal
It’s important for us to note that if you are considering appealing your property valuation, or have any other questions related to your property taxes, you should contact a tax professional. Our Realtors are experienced with property taxes, and can provide advice on looking at comparable properties, but appealing your property assessment is an involved process, and could end up with your assessed value actually increasing, which would raise the amount of money you have to pay yearly in taxes. If you are interested in learning more about the value of properties that are comparable to your own, contact a member of our team today for a complimentary consultation! You can reach us by filling out the contact form below, or by calling us at (816)-268-4033.