HCS HB 1576 -- PROPERTY TAX:  ASSESSMENT AND LEVY

SPONSOR:  Hilgemann

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 17 to 0.

This substitute makes various changes related to the assessment
and levy of property taxes.  The substitute:

(1)  Requires separate levies to be calculated and rolled-back
within each subclass of real property and for personal property
using the assessed valuation of each subclass of real property
and of personal property.  Under current law, the assessed
valuation of all subclasses of real property and personal
property are combined to calculate one levy to be applied to all
classes of property equally;

(2)  Classifies state-assessed railroad and utility property as
commercial for purposes of assessment and levy of property taxes;

(3)  Requires the governing body of any political subdivision
that levies a tax rate lower than its tax rate ceiling to approve
by a majority vote of the governing body at a public meeting any
increase of that lowered rate up to the tax ceiling;

(4)  Sets a formula for determining a blended property tax rate
by school districts for purposes of receiving state aid for
public schools through the state foundation formula;

(5)  Requires each taxing jurisdiction to calculate its tax rate
out to four decimal points.  Current law requires the rate to be
calculated out to three decimal points;

(6)  Requires a physical inspection of property during
reassessment when the assessed value increases 15% or more.
Current law requires a physical inspection when property
increases 17% or more;

(7)  Defines physical inspection of property during reassessment
as an on-site personal observation of the land and the exterior
portions of the buildings available to the inspector.  "Drive-by"
inspections will not qualify.  The assessor's staff must notify
the owner or occupant that a physical inspection was performed;

(8)  Allows credit cards to be used as a method of payment for
property taxes by the county collectors;

(9)  Places the burden of proof upon the assessor that the
assessed valuation of each parcel of property does not exceed the
true market value of the property.  If the assessor fails to
provide sufficient evidence that a physical inspection was
performed, the property owner will prevail upon appeal; and

(10)  Requires the board of equalization in all charter counties
to provide written findings of fact and conclusions of law to any
taxpayer subject to hearing before the board.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill would reduce the impact
of the recent high increases in real property tax assessments in
St. Louis County.  The bill would also correct the problems
resulting from "drive-by" assessments in the county.

Testifying for the bill were Representative Treadway; and St.
Louis County.

OPPONENTS:  Those who oppose the bill say that extending the
reassessment cycle will only make the increase in assessments
worse as increases will multiply and hit the taxpayers all at
once.  Concern was also voiced about the costs and time of
increasing the number of physical inspections performed by
assessors.

Testifying against the bill were the Missouri Assessor's
Association; Missouri National Education Association; Missouri
School Board Association; Missouri Association of Realtors;
Cooperating School Districts of Greater Kansas City; and
Cooperating School Districts of St. Louis, Clay County, and
Platte County.

Bill Tucker, Assistant Director of Research

Missouri House of Representatives
Last Updated October 11, 2002 at 9:01 am