HOUSE BILL NO. 1582 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE CATON.
2993H.02I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 137.180, 137.355, 138.060, 138.434, and 139.031, RSMo, and to enact in lieu thereof five new sections relating to property taxes.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 137.180, 137.355, 138.060, 138.434, and 139.031, RSMo, are 2 repealed and five new sections enacted in lieu thereof, to be known as sections 137.180, 3 137.355, 138.060, 138.434, and 139.031, to read as follows: 137.180. 1. Whenever any assessor shall increase the valuation of any real property 2 he shall forthwith notify the record owner of such increase, either in person, or by mail 3 directed to the last known address; every such increase in assessed valuation made by the 4 assessor shall be subject to review by the county board of equalization whereat the landowner 5 shall be entitled to be heard, and the notice to the landowner shall so state. 6 2. Effective January 1, 2009, for all counties with a charter form of government, other 7 than any county adopting a charter form of government after January 1, 2008, whenever any 8 assessor shall increase the valuation of any real property, he or she shall forthwith notify the 9 record owner on or before June fifteenth of such increase and, in a year of general 10 reassessment, the county shall notify the record owner of the projected tax liability likely to 11 result from such an increase, either in person, or by mail directed to the last known address; 12 every such increase in assessed valuation made by the assessor shall be subject to review by 13 the county board of equalization whereat the landowner shall be entitled to be heard, and the 14 notice to the landowner shall so state. Notice of the projected tax liability from the county 15 shall accompany the notice of increased valuation from the assessor.
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1582 2
16 3. For all calendar years prior to the first day of January of the year following receipt 17 of software necessary for the implementation of the requirements provided under subsections 18 4 and 5 of this section from the state tax commission, for any county not subject to the 19 provisions of subsection 2 of this section or subsection 2 of section 137.355, whenever any 20 assessor shall increase the valuation of any real property, he or she shall forthwith notify the 21 record owner on or before June fifteenth of the previous assessed value and such increase 22 either in person, or by mail directed to the last known address and include in such notice a 23 statement indicating that the change in assessed value may impact the record owner's tax 24 liability and provide all processes and deadlines for appealing determinations of the assessed 25 value of such property. Such notice shall be provided in a font and format sufficient to alert a 26 record owner of the potential impact upon tax liability and the appellate processes available. 27 4. Effective January first of the year following receipt of software necessary for the 28 implementation of the requirements provided under this subsection and subsection 5 of this 29 section from the state tax commission, for all counties not subject to the provisions of 30 subsection 2 of this section or subsection 2 of section 137.355, whenever any assessor shall 31 increase the valuation of any real property, he or she shall forthwith notify the record owner 32 on or before June fifteenth of such increase and, in a year of general reassessment, the county 33 shall notify the record owner of the projected tax liability likely to result from such an 34 increase, either in person, or by mail directed to the last known address; every such increase 35 in assessed valuation made by the assessor shall be subject to review by the county board of 36 equalization whereat the landowner shall be entitled to be heard, and the notice to the 37 landowner shall so state. Notice of the projected tax liability from the county shall 38 accompany the notice of increased valuation from the assessor. 39 5. The notice of projected tax liability, required under subsections 2 and 4 of this 40 section, from the county shall include: 41 (1) The record owner's name, address, and the parcel number of the property; 42 (2) A list of all political subdivisions levying a tax upon the property of the record 43 owner; 44 (3) The projected tax rate for each political subdivision levying a tax upon the 45 property of the record owner, and the purpose for each levy of such political subdivisions; 46 (4) The previous year's tax rates for each individual tax levy imposed by each 47 political subdivision levying a tax upon the property of the record owner; 48 (5) The tax rate ceiling for each levy imposed by each political subdivision levying a 49 tax upon the property of the record owner; 50 (6) The contact information for each political subdivision levying a tax upon the 51 property of the record owner; HB 1582 3
52 (7) A statement identifying any projected tax rates for political subdivisions levying a 53 tax upon the property of the record owner, which were not calculated and provided by the 54 political subdivision levying the tax; and 55 (8) The total projected property tax liability of the taxpayer. 56 6. In addition to the requirements provided under subsections 1, 2, and 5 of this 57 section, effective January 1, 2011, in any county with a charter form of government and with 58 more than one million inhabitants, whenever any assessor shall notify a record owner of any 59 change in assessed value, such assessor shall provide notice that information regarding the 60 specific assessment method and the basis of the computation of value for such property is 61 available on the assessor's website and provide the exact website address at which such 62 information may be accessed. Such notification shall provide the assessor's contact 63 information to enable taxpayers without internet access to request and receive information 64 regarding the assessment method and computation of value for such property. If any third- 65 party documents, reports, or other data was relied upon by the assessor in the 66 computation of assessed value, such documents, reports, or other data shall be disclosed 67 to the record owner on the assessor's website identified in the notice required under this 68 subsection. 137.355. 1. If an assessor increases the valuation of any tangible personal property as 2 estimated in the itemized list furnished to the assessor, and if an assessor increases the 3 valuation of any real property, he shall forthwith notify the record owner of the increase either 4 in person or by mail directed to the last known address, and if the address of the owner is 5 unknown notice shall be given by publication in two newspapers published in the county. 6 2. For all calendar years prior to the first day of January of the year following receipt 7 of software necessary for the implementation of the requirements provided under subsections 8 3 and 4 of this section from the state tax commission, whenever any assessor shall increase 9 the valuation of any real property, he or she shall forthwith notify the record owner on or 10 before June fifteenth of the previous assessed value and such increase either in person, or by 11 mail directed to the last known address and include on the face of such notice, in no less than 12 twelve-point font, the following statement: 13 NOTICE TO TAXPAYER: IF YOUR ASSESSED VALUE HAS INCREASED, IT 14 MAY INCREASE YOUR REAL PROPERTY TAXES WHICH ARE DUE DECEMBER 15 THIRTY-FIRST. IF YOU DO NOT AGREE THAT THE VALUE OF YOUR PROPERTY 16 HAS INCREASED, YOU MUST CHALLENGE THE VALUE ON OR BEFORE ______ 17 (INSERT DATE BY WHICH APPEAL MUST BE FILED) BY CONTACTING YOUR 18 COUNTY ASSESSOR. 19 3. Effective January first of the year following receipt of software necessary for the 20 implementation of the requirements provided under this subsection and subsection 4 of this HB 1582 4
21 section from the state tax commission, if an assessor increases the valuation of any real 22 property, the assessor, on or before June fifteenth, shall notify the record owner of the 23 increase and, in a year of general reassessment, the county shall notify the record owner of the 24 projected tax liability likely to result from such an increase either in person or by mail 25 directed to the last known address, and, if the address of the owner is unknown, notice shall 26 be given by publication in two newspapers published in the county. Notice of the projected 27 tax liability from the county shall accompany the notice of increased valuation from the 28 assessor. 29 4. The notice of projected tax liability, required under subsection 3 of this section, 30 from the county shall include: 31 (1) The record owner's name, address, and the parcel number of the property; 32 (2) A list of all political subdivisions levying a tax upon the property of the record 33 owner; 34 (3) The projected tax rate for each political subdivision levying a tax upon the 35 property of the record owner, and the purpose for each levy of such political subdivisions; 36 (4) The previous year's tax rates for each individual tax levy imposed by each 37 political subdivision levying a tax upon the property of the record owner; 38 (5) The tax rate ceiling for each levy imposed by each political subdivision levying a 39 tax upon the property of the record owner; 40 (6) The contact information for each political subdivision levying a tax upon the 41 property of the record owner; 42 (7) A statement identifying any projected tax rates for political subdivisions levying a 43 tax upon the property of the record owner, which were not calculated and provided by the 44 political subdivision levying the tax; and 45 (8) The total projected property tax liability of the taxpayer. 46 5. (1) Whenever an assessor notifies a record owner of an increase in assessed 47 value as required under subsection 3 of this section, such assessor shall provide: 48 (a) Notice that information regarding the specific assessment method and the 49 basis of the computation of value for such property is available on the assessor's 50 website; and 51 (b) The exact website address at which such information may be accessed. 52 (2) Such notification shall provide the assessor's contact information to enable 53 taxpayers without internet access to request and receive information regarding the 54 assessment method and computation of value for such property. 55 (3) If any third-party documents, reports, or other data was relied upon by the 56 assessor in the computation of assessed value, such documents, reports, or other data HB 1582 5
57 shall be disclosed to the record owner on the assessor's website identified in the notice 58 required under this subsection. 138.060. 1. The county board of equalization shall, in a summary way, determine all 2 appeals from the valuation of property made by the assessor, and shall correct and adjust the 3 assessment accordingly. There shall be no presumption that the assessor's valuation is 4 correct. In any county with a charter form of government with a population greater than two 5 hundred eighty thousand inhabitants but less than two hundred eighty-five thousand 6 inhabitants, in any county with a charter form of government with greater than one million 7 inhabitants, in any city not within a county, and in any other county for any property whose 8 assessed valuation increased at least fifteen percent from the previous assessment unless the 9 increase is due to new construction or improvement, the assessor shall have the burden to 10 prove that the assessor's valuation does not exceed the true market value of the subject 11 property. In such county or city, in the event a physical inspection of the subject property is 12 required by subsection 10 of section 137.115, the assessor shall have the burden to establish 13 the manner in which the physical inspection was performed and shall have the burden to 14 prove that the physical inspection was performed in accordance with section 137.115. In such 15 county or city, in the event the assessor fails to provide sufficient evidence to establish that 16 the physical inspection was performed in accordance with section 137.115, the property 17 owner shall prevail on the appeal as a matter of law, and the assessor's increased assessed 18 valuation shall be void in its entirety, and the previous assessed valuation shall be 19 applied to the property in place of the increased assessed valuation. At any hearing 20 before the state tax commission or a court of competent jurisdiction of an appeal of 21 assessment from a first class charter county or a city not within a county, the assessor shall not 22 advocate nor present evidence advocating a valuation higher than that value finally 23 determined by the assessor or the value determined by the board of equalization, whichever is 24 higher, for that assessment period. 25 2. The county clerk shall keep an accurate record of the proceedings and orders of the 26 board, and the assessor shall correct all erroneous assessments, and the clerk shall adjust the 27 tax book according to the orders of such board and the orders of the state tax commission, 28 except that in adding or deducting such percent to each tract or parcel of real estate as 29 required by such board or state tax commission, he shall add or deduct in each case any 30 fractional sum of less than fifty cents, so that the value of any separate tract shall contain no 31 fractions of a dollar. 138.434. In any first class charter county or a city not within a county [may require 2 by ordinance or charter the reimbursement to], a taxpayer [for the amount of just and 3 reasonable appraisal costs, attorney fees and court costs] shall be entitled to an award of all 4 appraisal costs and court costs resulting from an evidentiary hearing before the state tax HB 1582 6
5 commission or a court of competent jurisdiction if such appeal results in a final decision 6 reducing the appraised value of residential property by at least fifteen percent or the appraised 7 value of utility, industrial railroad and other subclass three property by at least twenty-five 8 percent from the appraised value determined by the board of equalization for that tax year. 9 The commission or court awarding such fees and costs shall consider the reasonableness of 10 the fees and costs within the context of the particular case. Such fees and costs shall not 11 exceed [one] five thousand dollars for a residential property appeal. Such fees and costs for 12 utility, industrial railroad or other subclass three property appeals shall not exceed the lesser 13 of [four] five thousand dollars or twenty-five percent of the tax savings resulting from the 14 appeal. The provisions of this section shall only apply to the first contested year when cases 15 are tried on a consolidated basis. 139.031. 1. Any taxpayer may protest all or any part of any current taxes assessed 2 against the taxpayer, except taxes collected by the director of revenue of Missouri. Any such 3 taxpayer desiring to pay any current taxes under protest or while paying taxes based upon a 4 disputed assessment shall[, at the time of paying such taxes,] make full payment of the current 5 tax bill before the delinquency date and file with the collector before the delinquency date a 6 written statement setting forth the grounds on which the protest is based. The statement shall 7 include the true value in money claimed by the taxpayer if disputed. An appeal before the 8 state tax commission shall not be dismissed on the grounds that a taxpayer failed to file a 9 written statement when paying taxes based upon a disputed assessment. 10 2. Upon receiving [payment of current taxes under] written notice of protest under 11 subsection 1 of this section or upon receiving from the state tax commission or the circuit 12 court notice of an appeal from the state tax commission or the circuit court under section 13 138.430, [along with] and full payment of the current tax bill before the delinquency date, the 14 collector shall disburse to the proper official all portions of taxes not protested or not disputed 15 by the taxpayer and shall impound in a separate fund all portions of such taxes which are 16 protested or in dispute. Every taxpayer protesting the payment of current taxes under 17 subsection 1 of this section shall, within ninety days after filing his protest, commence an 18 action against the collector by filing a petition for the recovery of the amount protested in the 19 circuit court of the county in which the collector maintains his office. If any taxpayer so 20 protesting his taxes under subsection 1 of this section shall fail to commence an action in the 21 circuit court for the recovery of the taxes protested within the time prescribed in this 22 subsection, such protest shall become null and void and of no effect, and the collector shall 23 then disburse to the proper official the taxes impounded, and any interest earned thereon, as 24 provided above in this subsection. 25 3. No action against the collector shall be commenced by any taxpayer who has, 26 effective for the current tax year, filed with the state tax commission or the circuit court a HB 1582 7
27 timely and proper appeal of the assessment of the taxpayer's property. The portion of taxes in 28 dispute from an appeal of an assessment shall be impounded in a separate fund and the 29 commission in its decision and order issued under chapter 138 or the circuit court in its 30 judgment may order all or any part of such taxes refunded to the taxpayer, or may authorize 31 the collector to release and disburse all or any part of such taxes. 32 4. Trial of the action for recovery of taxes protested under subsection 1 of this section 33 in the circuit court shall be in the manner prescribed for nonjury civil proceedings, and, after 34 determination of the issues, the court shall make such orders as may be just and equitable to 35 refund to the taxpayer all or any part of the current taxes paid under protest, together with any 36 interest earned thereon, or to authorize the collector to release and disburse all or any part of 37 the impounded taxes, and any interest earned thereon, to