What Types of Property Are There?
- Real Property — this includes land, improvements to the land and all rights inherent in ownership.
- Personal Property — this is any property that is not real property, and is not permanently affixed to or part of real estate. Personal property includes cars, boats and farm equipment.
What is Reassessment and Why is it Necessary?
Under Missouri’s Constitution, all assessments for property tax purposes must be based upon true market value and are uniform within the same class or subclass of property.
Reassessment is the review of all the property in a county to ensure the assessments are uniform and equitable. The assessor updates the assessments in each county to equalize values among the taxpayers and adjusts value to reflect current market conditions. Over time, the value of property may change, depending upon its nature, location, and other factors. Some values change more rapidly than others.
Who is Responsible for Reassessing Property?
The county assessor is primarily responsible for assessing property within the county. However, the assessor’s work is subject to review by the county Board of Equalization and the Missouri State Tax Commission. The State Tax Commission is the state agency charged with general supervision of assessors and with enforcing property tax laws.
What is Market Value?
Market value, true value in money and appraised value all have the same meaning under Missouri law. A simple definition of market value is the price the property would bring 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.
How is My Assessment Level Established?
Once market value has been determined, the assessor calculates a percentage of that value to arrive at the assessed value. The percentage is based on the classification, determined by the type of property or how it is used. The percentages are:
- Residential - 19%
- Agricultural - 12%
- Commercial & All Others - 32%
- Agricultural - 12%
- Commercial & All Others - 33.33%
As an example, a residence with a market value of $100,000 would be assessed at 19%, which would place its assessed value at $19,000. An automobile with a market value of $15,000 would be assessed at 33 1/3%, or $4,995.
How are the Real Estate Classifications Determined?
Missouri statutes define the three subclasses of real estate:
Subclass 1 - Residential property, all real property improved by a structure which is used or intended to be used for residential living by human occupants, vacant land in connection with an airport, land used as a golf course, and manufactured home parks, but residential property shall not include facilities used primarily for transient housing.
Subclass 2 - Agricultural and Horticultural property is that which is actively used for those purposes. The value of this land is established by its productivity, based on soil productivity guidelines set by the State Tax Commission. It is not based on market value.
Subclass 3 - Utility, industrial and railroad property, and any other real estate that does not fit either of the other two classes. Includes mines, stores, factories and property of non-profit corporations.
No Improvements Have Been Made to My Property, Why Should the Assessed Value Increase?
Market value changes over time even if no improvements are made to the property. For example, many people sell their homes for more money than they originally paid years earlier. The statutes require that property be periodically reassessed to maintain realistic market values and treat all taxpayers fairly.
I Just Purchased A Vehicle, Will I Owe property Taxes on It This Year?
Property taxes are due on property owned, or under your control, as of January 1st each year. If you did not own a vehicle on January 1, then no personal property taxes will be due. If you purchase a vehicle after January 1st, no taxes will be due on it in the year of purchase.
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