HB 1800 -- REAL PROPERTY ASSESSMENTS(Matthiesen)

COMMITTEE OF ORIGIN: Special Committee on Tax Reform



This bill provides a definition for "assessment value" as it relates to real property assessment purposes (Section 137.016, RSMo).

The bill modifies the manner in which a political subdivision can revise each tax levy to allow for inflationary assessment growth for all subclasses of real and personal property.

Currently, the inflationary growth factor for any subclass of real and personal property is limited to the actual assessment growth, exclusive of new construction and improvements, but not to exceed the Consumer Price Index, or 5%, whichever is lower.

This bill limits the inflationary growth factor for any subclass of real or personal property to the actual assessment growth, but not to exceed the lower of the following:

(1) The Consumer Price Index; or

(2) The following percentages:

(a) For tax levy revisions before January 1, 2027, 5%; or

(b) For tax levy revisions on or after January 1, 2027, 3% (Section 137.073).

The bill provides that, for the purpose of equalizing the valuation of real property and tangible personal property among counties, the State Tax Commission must use ratio studies to determine whether a class or subclass of property is valued below or above its true value in money. A class or subclass of property must be considered below or above its true value in money if the weighted mean ratio is less than 70% or greater than 100% (Section 138.390).

This bill is similar to HB 517 (2025).

HCS HB 2178 -- TAXATION OF PROPERTY (Perkins)

COMMITTEE OF ORIGIN: Special Committee on Property Tax Reform

This bill requires that the election authority for a political subdivision or special district label property taxation-related ballot measures numerically or alphabetically. Ballot measures will not be labeled in any other descriptive manner. (Section 115.240)

Beginning January 1, 2027, the bill requires that ballot language for a vote to levy a real property tax or personal property tax include elements as specified in the bill.

This bill requires ballot language to describe the desired tax as a specified amount per $100,000 or per $10,000 of appraised value, depending on whether the property is residential, commercial, agricultural, or a motor vehicle.

The bill prohibits any political subdivision or election authority from advertising or describing any proposed property tax as a ?no tax increase? tax proposal.

The bill requires ballot language statements to be fair, true, and accurate. (Section 115.706)

Currently, real property is divided into three separate classifications based on the use or purpose of the property. Each of the subclassifications of property are assessed at different rates. When real property is used for different purposes resulting in different classifications, the county assessor must allocate to each classification the percentage of the true value in money of the property devoted to each use.

This bill provides that when a single family home that is owned by a sole proprietor, individual, partnership, or limited liability company (LLC) is leased, in whole or in part, for 30 consecutive days or less, the home will be classified as residential property and will not necessarily be considered "transient housing". (Section 137.016)

The bill provides that when a valuation of utility, industrial, commercial, railroad, and other real properties is made by a computer, computer-assisted method, or a computer program, the burden of proof to sustain the valuation must be on the assessor at any hearing or appeal. This bill requires the assessor to conduct a physical inspection of any parcel of utility, industrial, commercial, railroad, or other real property before the assessor can increase the assessed valuation of such parcel of real property by more than 15%. If any general reassessment of property causes the assessed valuation to increase by more than 15% from the previous assessment, except for an increase due to new construction or improvement, the increase must be evenly divided between each of the next successive reassessment cycles in a manner that does not cause an increase of more than 15% for any two-year period. If a taxpayer's real property tax liability increases by more than 15%, the assessor and collector must apply a tax credit equal to the amount that exceeds that 15% increase.

This bill requires the physical inspection of a property required to increase the assessed valuation of a parcel of real property by more than 15% since the last assessment to be completed prior to July 1 of the reassessment year. (Section 137.115)

This bill requires an assessor to provide any third-party documents or reports that were relied upon in the computation of a property's assessed value to the property owner. (Section 137.180)

The bill requires assessors to notify a property owner about the method and basis of computation of value for any property that gets an increase in assessed value. (Section 137.355)

If cases arising from general reassessment of a property whose assessed valuation increased by at least 15% are not heard and acted upon by the board of equalization by September 30th of an applicable year, the following must occur:

(1) The case must be dismissed;

(2) The assessor?s increased assessed valuation must be voided; and (3) The previous assessed valuation must be applied instead of the increased assessed valuation. (Section 138.010) If an assessor fails to provide sufficient evidence to prove a physical inspection was performed in an appeal, the assessor?s increased assessed valuation must be voided and the previous assessed valuation must be applied instead of the increased assessed valuation.

If a taxpayer submits a written appraisal report prepared by a certified Missouri appraiser to the board of equalization at least five days prior to the scheduled hearing date, the value of the property provided in the certified appraiser?s report must be the property?s presumptive true value in money. (Section 138.060)

This bill allows a person who just acquired a real property during an even-numbered year to appeal the assessed value to the State Tax Commission (STC). If the appeal is successful, the STC has the authority to lower the property's assessed value. (Section 138.135)

When the STC equalizes the valuation of a class or subclass of property that results in an increase of more than 15%, the increase must be evenly divided between the next reassessment cycles in a way that does not cause an increase of more than 15% for any two-year reassessment period. If a taxpayer's real property tax liability increases by more than 15%, the assessor and collector must apply a tax credit equal to the amount that exceeds that 15% increase. (Section 138.390)

If an assessor appeals certain decisions of the STC to a court and the taxpayer prevails, the taxpayer must be awarded costs of appeal and reasonable attorney?s fees. (Section 138.430)

Currently, in charter counties and the City of St. Louis, taxpayers can be reimbursed appraisal costs, attorneys fees, and court costs incurred during an appeal to the STC if the taxpayer is successful in the appeal. This bill requires such reimbursements. The bill also increases the maximum amount of fees to be reimbursed from $1,000 to $5,000 for residential property appeals, and from $4,000 to $5,000 for commercial, utility, industrial, railroad, or other subclass three property appeals. (Section 138.434)

This bill requires refunds to be issued to taxpayers within 30 days of the date of a determination that the taxpayer is entitled to one. If the collector fails to issue the refund within 30 days, the taxpayer will be entitled to interest on the refund at a rate established by the Director of Revenue. (Section 139.031)

HCS HB 3035 -- MOTOR VEHICLE ASSESSMENTS (Reedy)

COMMITTEE OF ORIGIN: Special Committee on Tax Reform

Beginning January 1, 2027, this bill requires the assessor to use 85% of the manufacturer?s suggested retail price (MSRP) for all manufactured motor vehicles to determine the original value in money of all motor vehicle assessment valuations.

The bill provides a 12-year depreciation schedule that must be applied to 85% of each MSRP to develop the annual and historical valuation guide for all motor vehicles. Each year, these values must be delivered to each approved software vendor by November 15th and listed for use in the next assessment year by December 15th.

If there is no listing available from an approved publication for a particular motor vehicle, the assessor must:

(1) Use information or publications that fairly estimate the original value of the motor vehicle; and

(2) Apply the depreciation schedule as provided in the bill.

The State Tax Commission (STC) must secure an annual appropriation for the guide and the programming needed to allow valuations by the vehicle identification number in all certified mass appraisal software systems. The STC or the State must be responsible for renewals and annual software cost for preparing the data in a usable format for approved software vendors.

Additionally, current law requires a taxpayer to file an appeal of the taxpayer's assessed valuation by no later than the second Monday in July. This act requires such appeal to be filed by no later than the first Monday in August. (Sections 137.275 to 138.180)

JOSH NORBERG

CLASSIFICATION OF PROPERTY

This act prohibits an assessor from reclassifying real property without first conducting an in-person consultation with the owner of record of such property. An assessor shall be deemed to be in compliance with this provision if the assessor can document a good-faith effort to contact the owner of record, as described in the act. (Section 137.016)

REAL PROPERTY ASSESSED VALUES

Current law provides that an assessor shall not increase the assessed valuation of any parcel of residential real property by more than fifteen percent since the last reassessment without first conducting a physical inspection of the property and providing notice to the taxpayer. This act modifies such provision by prohibiting any increase in assessments of residential real property in excess of fifteen percent. Additionally, a property owner may request the assessor to conduct a physical inspection, provided that the assessed value shall not increase as a result of such inspection. (Section 137.115.10)

REAL PROPERTY TAX CREDIT

Current law authorizes certain counties to provide a tax credit for the property tax liabilities owed on an eligible taxpayer's homestead. This act repeals such provision and instead provides that all counties shall provide a property tax credit for any real property owned by an eligible taxpayer, provided that the real property tax liability owed on the taxpayer's real property may be increased by no more than 2.5% per year or the percent increase in inflation, whichever is less. However, for any county in which any subclass of real property is considered to be valued below its true value in money, as determined in the act, the amount by which a taxpayer's real property tax liability may increase shall not exceed 5% per year, provided that this provision shall no longer apply to a county once such subclass of real property in such county is no longer considered to be valued below its true value in money.

Additionally, the act provides that no personal property tax liability owed on any individual item of personal property shall not be increased above the liability owed on such item during the 2024 tax year or the first year an eligible taxpayer first incurs personal property tax liability on such personal property, whichever occurs later. Any eligible taxpayer experiencing such an increase shall be eligible for a credit on the eligible taxpayer's personal property tax liability in an amount equal to such increase, as described in the act. (Sections 137.1058 and 137.1055)

STATE TAX COMMISSION RATIO STUDIES

Current law requires the State Tax Commission to equalize the valuation of each class and subclass of property among the respective counties. This act requires the Commission to utilize ratio studies to determine whether a class or subclass is valued below or above its true value. Such values shall be no less than 75% and no more than 100% of true market value, as described in the act. (Section 138.390)

JOSHUA NORBERG

SCS/SBs 1066 & 1088 - This act modifies the definition of "residential property" for the purposes of the taxation of real property by providing that such definition shall include single family homes that are owned by a sole proprietor, individual, partnership, or limited liability company and leased, in whole or in part, for a term of less than thirty consecutive days.

This act is identical to SCS/HB 1086 (2025) and is substantially similar to SB 699 (2025) and SB 784 (2025), and to a provision in HB 660 (2025).

JOSH NORBERG