Modifies provisions relating to personal property assessments

EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1118
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR FITZWATER.
4503S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.073 and 137.115, RSMo, and to enact in lieu thereof two new sections
relating to personal property assessments.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.073 and 137.115, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 137.073 and 137.115, to read as follows:3
137.073. 1. As used in this section, the following 1
terms mean: 2
(1) "General reassessment", changes in value, entered 3
in the assessor's books, of a substantial portion of the 4
parcels of real property within a county resulting wholly or 5
partly from reappraisal of value or other actions of the 6
assessor or county equalization body or ordered by the state 7
tax commission or any court; 8
(2) "Tax rate", "rate", or "rate of levy", singular or 9
plural, includes the tax rate for each purpose of taxation 10
of property a taxing authority is authorized to levy without 11
a vote and any tax rate authorized by election, including 12
bond interest and sinking fund; 13
(3) "Tax rate ceiling", a tax rate as revised by the 14
taxing authority to comply with the provisions of this 15
section or when a court has determined the tax rate; except 16
that, other provisions of law to the contrary 17
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notwithstanding, a school district may levy the operating 18
levy for school purposes required for the current year 19
pursuant to subsection 2 of section 163.021, less all 20
adjustments required pursuant to Article X, Section 22 of 21
the Missouri Constitution, if such tax rate does not exceed 22
the highest tax rate in effect subsequent to the 1980 tax 23
year. This is the maximum tax rate that may be levied, 24
unless a higher tax rate ceiling is approved by voters of 25
the political subdivision as provided in this section; 26
(4) "Tax revenue", when referring to the previous 27
year, means the actual receipts from ad valorem levies on 28
all classes of property, including state-assessed property, 29
in the immediately preceding fiscal year of the political 30
subdivision, plus an allowance for taxes billed but not 31
collected in the fiscal year and plus an additional 32
allowance for the revenue which would have been collected 33
from property which was annexed by such political 34
subdivision but which was not previously used in determining 35
tax revenue pursuant to this section. The term "tax 36
revenue" shall not include any receipts from ad valorem 37
levies on any property of a railroad corporation or a public 38
utility, as these terms are defined in section 386.020, 39
which were assessed by the assessor of a county or city in 40
the previous year but are assessed by the state tax 41
commission in the current year. All school districts and 42
those counties levying sales taxes pursuant to chapter 67 43
shall include in the calculation of tax revenue an amount 44
equivalent to that by which they reduced property tax levies 45
as a result of sales tax pursuant to section 67.505 and 46
section 164.013 [or as excess home dock city or county fees 47
as provided in subsection 4 of section 313.820] in the 48
immediately preceding fiscal year but not including any 49
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amount calculated to adjust for prior years. For purposes 50
of political subdivisions which were authorized to levy a 51
tax in the prior year but which did not levy such tax or 52
levied a reduced rate, the term "tax revenue", as used in 53
relation to the revision of tax levies mandated by law, 54
shall mean the revenues equal to the amount that would have 55
been available if the voluntary rate reduction had not been 56
made. 57
2. Whenever changes in assessed valuation are entered 58
in the assessor's books for any personal property, in the 59
aggregate, or for any subclass of real property as such 60
subclasses are established in Section 4(b) of Article X of 61
the Missouri Constitution and defined in section 137.016, 62
the county clerk in all counties and the assessor of St. 63
Louis City shall notify each political subdivision wholly or 64
partially within the county or St. Louis City of the change 65
in valuation of each subclass of real property, 66
individually, and personal property, in the aggregate, 67
exclusive of new construction and improvements. All 68
political subdivisions shall immediately revise the 69
applicable rates of levy for each purpose for each subclass 70
of real property, individually, and personal property, in 71
the aggregate, for which taxes are levied to the extent 72
necessary to produce from all taxable property, exclusive of 73
new construction and improvements, substantially the same 74
amount of tax revenue as was produced in the previous year 75
for each subclass of real property, individually, and 76
personal property, in the aggregate, except that the rate 77
shall not exceed the greater of the most recent voter- 78
approved rate or the most recent voter-approved rate as 79
adjusted under subdivision (2) of subsection 5 of this 80
section. Any political subdivision that has received 81
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approval from voters for a tax increase after August 27, 82
2008, may levy a rate to collect substantially the same 83
amount of tax revenue as the amount of revenue that would 84
have been derived by applying the voter-approved increased 85
tax rate ceiling to the total assessed valuation of the 86
political subdivision as most recently certified by the city 87
or county clerk on or before the date of the election in 88
which such increase is approved, increased by the percentage 89
increase in the consumer price index, as provided by law, 90
except that the rate shall not exceed the greater of the 91
most recent voter-approved rate or the most recent voter- 92
approved rate as adjusted under subdivision (2) of 93
subsection 5 of this section. Such tax revenue shall not 94
include any receipts from ad valorem levies on any real 95
property which was assessed by the assessor of a county or 96
city in such previous year but is assessed by the assessor 97
of a county or city in the current year in a different 98
subclass of real property. Where the taxing authority is a 99
school district for the purposes of revising the applicable 100
rates of levy for each subclass of real property, the tax 101
revenues from state-assessed railroad and utility property 102
shall be apportioned and attributed to each subclass of real 103
property based on the percentage of the total assessed 104
valuation of the county that each subclass of real property 105
represents in the current [taxable] tax year. As provided 106
in Section 22 of Article X of the constitution, a political 107
subdivision may also revise each levy to allow for 108
inflationary assessment growth occurring within the 109
political subdivision. The inflationary growth factor for 110
any such subclass of real property or personal property 111
shall be limited to the actual assessment growth in such 112
subclass or class, exclusive of new construction and 113
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improvements, and exclusive of the assessed value on any 114
real property which was assessed by the assessor of a county 115
or city in the current year in a different subclass of real 116
property, but not to exceed the consumer price index or five 117
percent, whichever is lower. Should the tax revenue of a 118
political subdivision from the various tax rates determined 119
in this subsection be different than the tax revenue that 120
would have been determined from a single tax rate as 121
calculated pursuant to the method of calculation in this 122
subsection prior to January 1, 2003, then the political 123
subdivision shall revise the tax rates of those subclasses 124
of real property, individually, and/or personal property, in 125
the aggregate, in which there is a tax rate reduction, 126
pursuant to the provisions of this subsection. Such 127
revision shall yield an amount equal to such difference and 128
shall be apportioned among such subclasses of real property, 129
individually, and/or personal property, in the aggregate, 130
based on the relative assessed valuation of the class or 131
subclasses of property experiencing a tax rate reduction. 132
Such revision in the tax rates of each class or subclass 133
shall be made by computing the percentage of current year 134
adjusted assessed valuation of each class or subclass with a 135
tax rate reduction to the total current year adjusted 136
assessed valuation of the class or subclasses with a tax 137
rate reduction, multiplying the resulting percentages by the 138
revenue difference between the single rate calculation and 139
the calculations pursuant to this subsection and dividing by 140
the respective adjusted current year assessed valuation of 141
each class or subclass to determine the adjustment to the 142
rate to be levied upon each class or subclass of property. 143
The adjustment computed herein shall be multiplied by one 144
hundred, rounded to four decimals in the manner provided in 145
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this subsection, and added to the initial rate computed for 146
each class or subclass of property. For school districts 147
that levy separate tax rates on each subclass of real 148
property and personal property in the aggregate, if voters 149
approved a ballot before January 1, 2011, that presented 150
separate stated tax rates to be applied to the different 151
subclasses of real property and personal property in the 152
aggregate, or increases the separate rates that may be 153
levied on the different subclasses of real property and 154
personal property in the aggregate by different amounts, the 155
tax rate that shall be used for the single tax rate 156
calculation shall be a blended rate, calculated in the 157
manner provided under subdivision (1) of subsection 6 of 158
this section. Notwithstanding any provision of this 159
subsection to the contrary, no revision to the rate of levy 160
for personal property shall cause such levy to increase over 161
the levy for personal property from the prior year. 162
3. (1) Where the taxing authority is a school 163
district, it shall be required to revise the rates of levy 164
to the extent necessary to produce from all taxable 165
property, including state-assessed railroad and utility 166
property, which shall be separately estimated in addition to 167
other data required in complying with section 164.011, 168
substantially the amount of tax revenue permitted in this 169
section. In the year following tax rate reduction, the tax 170
rate ceiling may be adjusted to offset such district's 171
reduction in the apportionment of state school moneys due to 172
its reduced tax rate. However, in the event any school 173
district, in calculating a tax rate ceiling pursuant to this 174
section, requiring the estimating of effects of state- 175
assessed railroad and utility valuation or loss of state 176
aid, discovers that the estimates used result in receipt of 177
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excess revenues, which would have required a lower rate if 178
the actual information had been known, the school district 179
shall reduce the tax rate ceiling in the following year to 180
compensate for the excess receipts, and the recalculated 181
rate shall become the tax rate ceiling for purposes of this 182
section. 183
(2) For any political subdivision which experiences a 184
reduction in the amount of assessed valuation relating to a 185
prior year, due to decisions of the state tax commission or 186
a court pursuant to sections 138.430 to 138.433, or due to 187
clerical errors or corrections in the calculation or 188
recordation of any assessed valuation: 189
(a) Such political subdivision may revise the tax rate 190
ceiling for each purpose it levies taxes to compensate for 191
the reduction in assessed value occurring after the 192
political subdivision calculated the tax rate ceiling for 193
the particular subclass of real property or for personal 194
property, in the aggregate, in a prior year. Such revision 195
by the political subdivision shall be made at the time of 196
the next calculation of the tax rate for the particular 197
subclass of real property or for personal property, in the 198
aggregate, after the reduction in assessed valuation has 199
been determined and shall be calculated in a manner that 200
results in the revised tax rate ceiling being the same as it 201
would have been had the corrected or finalized assessment 202
been available at the time of the prior calculation; 203
(b) In addition, for up to three years following the 204
determination of the reduction in assessed valuation as a 205
result of circumstances defined in this subdivision, such 206
political subdivision may levy a tax rate for each purpose 207
it levies taxes above the revised tax rate ceiling provided 208
in paragraph (a) of this subdivision to recoup any revenues 209
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it was entitled to receive had the corrected or finalized 210
assessment been available at the time of the prior 211
calculation. 212
4. (1) In order to implement the provisions of this 213
section and Section 22 of Article X of the Constitution of 214
Missouri, the term improvements shall apply to both real and 215
personal property. In order to determine the value of new 216
construction and improvements, each county assessor shall 217
maintain a record of real property valuations in such a 218
manner as to identify each year the increase in valuation 219
for each political subdivision in the county as a result of 220
new construction and improvements. The value of new 221
construction and improvements shall include the additional 222
assessed value of all improvements or additions to real 223
property which were begun after and were not part of the 224
prior year's assessment, except that the additional assessed 225
value of all improvements or additions to real property 226
which had been totally or partially exempt from ad valorem 227
taxes pursuant to sections 99.800 to 99.865, sections 228
135.200 to 135.255, and section 353.110 shall be included in 229
the value of new construction and improvements when the 230
property becomes totally or partially subject to assessment 231
and payment of all ad valorem taxes. The aggregate increase 232
in valuation of personal property for the current year over 233
that of the previous year is the equivalent of the new 234
construction and improvements factor for personal property. 235
Beginning January 1, 2028, any increase in the aggregate 236
valuation of personal property for the current year over 237
that of the previous year shall not be counted as new 238
construction. Notwithstanding any opt-out implemented 239
pursuant to subsection 14 of section 137.115, the assessor 240
shall certify the amount of new construction and 241
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improvements and the amount of assessed value on any real 242
property which was assessed by the assessor of a county or 243
city in such previous year but is assessed by the assessor 244
of a county or city in the current year in a different 245
subclass of real property separately for each of the three 246
subclasses of real property for each political subdivision 247
to the county clerk in order that political subdivisions 248
shall have this information for the purpose of calculating 249
tax rates pursuant to this section and Section 22, Article 250
X, Constitution of Missouri. In addition, the state tax 251
commission shall certify each year to each county clerk the 252
increase in the general price level as measured by the 253
Consumer Price Index for All Urban Consumers for the United 254
States, or its successor publications, as defined and 255
officially reported by the United States Department of 256
Labor, or its successor agency. The state tax commission 257
shall certify the increase in such index on the latest 258
twelve-month basis available on February first of each year 259
over the immediately preceding prior twelve-month period in 260
order that political subdivisions shall have this 261
information available in setting their tax rates according 262
to law and Section 22 of Article X of the Constitution of 263
Missouri. For purposes of implementing the provisions of 264
this section and Section 22 of Article X of the Missouri 265
Constitution, the term "property" means all taxable 266
property, including state-assessed property. 267
(2) Each political subdivision required to revise 268
rates of levy pursuant to this section or Section 22 of 269
Article X of the Constitution of Missouri shall calculate 270
each tax rate it is authorized to levy and, in establishing 271
each tax rate, shall consider each provision for tax rate 272
revision provided in this section and Section 22 of Article 273
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X of the Constitution of Missouri, separately and without 274
regard to annual tax rate reductions provided in section 275
67.505 and section 164.013. Each political subdivision 276
shall set each tax rate it is authorized to levy using the 277
calculation that produces the lowest tax rate ceiling. It 278
is further the intent of the general assembly, pursuant to 279
the authority of Section 10(c) of Article X of the 280
Constitution of Missouri, that the provisions of such 281
section be applicable to tax rate revisions mandated 282
pursuant to Section 22 of Article X of the Constitution of 283
Missouri as to reestablishing tax rates as revised in 284
subsequent years, enforcement provisions, and other 285
provisions not in conflict with Section 22 of Article X of 286
the Constitution of Missouri. Annual tax rate reductions 287
provided in section 67.505 and section 164.013 shall be 288
applied to the tax rate as established pursuant to this 289
section and Section 22 of Article X of the Constitution of 290
Missouri, unless otherwise provided by law. 291
5. (1) In all political subdivisions, the tax rate 292
ceiling established pursuant to this section shall not be 293
increased unless approved by a vote of the people. Approval 294
of the higher tax rate shall be by at least a majority of 295
votes cast. When a proposed higher tax rate requires 296
approval by more than a simple majority pursuant to any 297
provision of law or the constitution, the tax rate increase 298
must receive approval by at least the majority required. 299
(2) When voters approve an increase in the tax rate, 300
the amount of the increase shall be added to the tax rate 301
ceiling as calculated pursuant to this section to the extent 302
the total rate does not exceed any maximum rate prescribed 303
by law. If a ballot question presents a stated tax rate for 304
approval rather than describing the amount of increase in 305
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the question, the stated tax rate approved shall be adjusted 306
as provided in this section and, so adjusted, shall be the 307
current tax rate ceiling. The increased tax rate ceiling as 308
approved shall be adjusted such that when applied to the 309
current total assessed valuation of the political 310
subdivision, excluding new construction and improvements 311
since the date of the election approving such increase, the 312
revenue derived from the adjusted tax rate ceiling is equal 313
to the sum of: the amount of revenue which would have been 314
derived by applying the voter-approved increased tax rate 315
ceiling to total assessed valuation of the political 316
subdivision, as most recently certified by the city or 317
county clerk on or before the date of the election in which 318
such increase is approved, increased by the percentage 319
increase in the consumer price index, as provided by law. 320
Such adjusted tax rate ceiling may be applied to the total 321
assessed valuation of the political subdivision at the 322
setting of the next tax rate. If a ballot question presents 323
a phased-in tax rate increase, upon voter approval, each tax 324
rate increase shall be adjusted in the manner prescribed in 325
this section to yield the sum of: the amount of revenue 326
that would be derived by applying such voter-approved 327
increased rate to the total assessed valuation, as most 328
recently certified by the city or county clerk on or before 329
the date of the election in which such increase was 330
approved, increased by the percentage increase in the 331
consumer price index, as provided by law, from the date of 332
the election to the time of such increase and, so adjusted, 333
shall be the current tax rate ceiling. 334
(3) The governing body of any political subdivision 335
may levy a tax rate lower than its tax rate ceiling and may, 336
in a nonreassessment year, increase that lowered tax rate to 337
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a level not exceeding the tax rate ceiling without voter 338
approval in the manner provided under subdivision (4) of 339
this subsection. Nothing in this section shall be construed 340
as prohibiting a political subdivision from voluntarily 341
levying a tax rate lower than that which is required under 342
the provisions of this section or from seeking voter 343
approval of a reduction to such political subdivision's tax 344
rate ceiling. 345
(4) In a year of general reassessment, a governing 346
body whose tax rate is lower than its tax rate ceiling shall 347
revise its tax rate pursuant to the provisions of subsection 348
4 of this section as if its tax rate was at the tax rate 349
ceiling. In a year following general reassessment, if such 350
governing body intends to increase its tax rate, the 351
governing body shall conduct a public hearing, and in a 352
public meeting it shall adopt an ordinance, resolution, or 353
policy statement justifying its action prior to setting and 354
certifying its tax rate. The provisions of this subdivision 355
shall not apply to any political subdivision which levies a 356
tax rate lower than its tax rate ceiling solely due to a 357
reduction required by law resulting from sales tax 358
collections. The provisions of this subdivision shall not 359
apply to any political subdivision which has received voter 360
approval for an increase to its tax rate ceiling subsequent 361
to setting its most recent tax rate. 362
6. (1) For the purposes of calculating state aid for 363
public schools pursuant to section 163.031, each taxing 364
authority which is a school district shall determine its 365
proposed tax rate as a blended rate of the classes or 366
subclasses of property. Such blended rate shall be 367
calculated by first determining the total tax revenue of the 368
property within the jurisdiction of the taxing authority, 369
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which amount shall be equal to the sum of the products of 370
multiplying the assessed valuation of each class and 371
subclass of property by the corresponding tax rate for such 372
class or subclass, then dividing the total tax revenue by 373
the total assessed valuation of the same jurisdiction, and 374
then multiplying the resulting quotient by a factor of one 375
hundred. Where the taxing authority is a school district, 376
such blended rate shall also be used by such school district 377
for calculating revenue from state-assessed railroad and 378
utility property as defined in chapter 151 and for 379
apportioning the tax rate by purpose. 380
(2) Each taxing authority proposing to levy a tax rate 381
in any year shall notify the clerk of the county commission 382
in the county or counties where the tax rate applies of its 383
tax rate ceiling and its proposed tax rate. Each taxing 384
authority shall express its proposed tax rate in a fraction 385
equal to the nearest one-tenth of a cent, unless its 386
proposed tax rate is in excess of one dollar, then one/one- 387
hundredth of a cent. If a taxing authority shall round to 388
one/one-hundredth of a cent, it shall round up a fraction 389
greater than or equal to five/one-thousandth of one cent to 390
the next higher one/one-hundredth of a cent; if a taxing 391
authority shall round to one-tenth of a cent, it shall round 392
up a fraction greater than or equal to five/one-hundredths 393
of a cent to the next higher one-tenth of a cent. Any 394
taxing authority levying a property tax rate shall provide 395
data, in such form as shall be prescribed by the state 396
auditor by rule, substantiating such tax rate complies with 397
Missouri law. All forms for the calculation of rates 398
pursuant to this section shall be promulgated as a rule and 399
shall not be incorporated by reference. The state auditor 400
shall promulgate rules for any and all forms for the 401
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calculation of rates pursuant to this section which do not 402
currently exist in rule form or that have been incorporated 403
by reference. In addition, each taxing authority proposing 404
to levy a tax rate for debt service shall provide data, in 405
such form as shall be prescribed by the state auditor by 406
rule, substantiating the tax rate for debt service complies 407
with Missouri law. A tax rate proposed for annual debt 408
service requirements will be prima facie valid if, after 409
making the payment for which the tax was levied, bonds 410
remain outstanding and the debt fund reserves do not exceed 411
the following year's payments. The county clerk shall keep 412
on file and available for public inspection all such 413
information for a period of three years. The clerk shall, 414
within three days of receipt, forward a copy of the notice 415
of a taxing authority's tax rate ceiling and proposed tax 416
rate and any substantiating data to the state auditor. The 417
state auditor shall, within fifteen days of the date of 418
receipt, examine such information and return to the county 419
clerk his or her findings as to compliance of the tax rate 420
ceiling with this section and as to compliance of any 421
proposed tax rate for debt service with Missouri law. If 422
the state auditor believes that a taxing authority's 423
proposed tax rate does not comply with Missouri law, then 424
the state auditor's findings shall include a recalculated 425
tax rate, and the state auditor may request a taxing 426
authority to submit documentation supporting such taxing 427
authority's proposed tax rate. The county clerk shall 428
immediately forward a copy of the auditor's findings to the 429
taxing authority and shall file a copy of the findings with 430
the information received from the taxing authority. The 431
taxing authority shall have fifteen days from the date of 432
receipt from the county clerk of the state auditor's 433
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findings and any request for supporting documentation to 434
accept or reject in writing the rate change certified by the 435
state auditor and to submit all requested information to the 436
state auditor. A copy of the taxing authority's acceptance 437
or rejection and any information submitted to the state 438
auditor shall also be mailed to the county clerk. If a 439
taxing authority rejects a rate change certified by the 440
state auditor and the state auditor does not receive 441
supporting information which justifies the taxing 442
authority's original or any subsequent proposed tax rate, 443
then the state auditor shall refer the perceived violations 444
of such taxing authority to the attorney general's office 445
and the attorney general is authorized to obtain injunctive 446
relief to prevent the taxing authority from levying a 447
violative tax rate. 448
(3) In the event that the taxing authority incorrectly 449
completes the forms created and promulgated under 450
subdivision (2) of this subsection, or makes a clerical 451
error, the taxing authority may submit amended forms with an 452
explanation for the needed changes. If such amended forms 453
are filed under regulations prescribed by the state auditor, 454
the state auditor shall take into consideration such amended 455
forms for the purposes of this subsection. 456
7. No tax rate shall be extended on the tax rolls by 457
the county clerk unless the political subdivision has 458
complied with the foregoing provisions of this section. 459
8. Whenever a taxpayer has cause to believe that a 460
taxing authority has not complied with the provisions of 461
this section, the taxpayer may make a formal complaint with 462
the prosecuting attorney of the county. Where the 463
prosecuting attorney fails to bring an action within ten 464
days of the filing of the complaint, the taxpayer may bring 465
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a civil action pursuant to this section and institute an 466
action as representative of a class of all taxpayers within 467
a taxing authority if the class is so numerous that joinder 468
of all members is impracticable, if there are questions of 469
law or fact common to the class, if the claims or defenses 470
of the representative parties are typical of the claims or 471
defenses of the class, and if the representative parties 472
will fairly and adequately protect the interests of the 473
class. In any class action maintained pursuant to this 474
section, the court may direct to the members of the class a 475
notice to be published at least once each week for four 476
consecutive weeks in a newspaper of general circulation 477
published in the county where the civil action is commenced 478
and in other counties within the jurisdiction of a taxing 479
authority. The notice shall advise each member that the 480
court will exclude him or her from the class if he or she so 481
requests by a specified date, that the judgment, whether 482
favorable or not, will include all members who do not 483
request exclusion, and that any member who does not request 484
exclusion may, if he or she desires, enter an appearance. 485
In any class action brought pursuant to this section, the 486
court, in addition to the relief requested, shall assess 487
against the taxing authority found to be in violation of 488
this section the reasonable costs of bringing the action, 489
including reasonable attorney's fees, provided no attorney's 490
fees shall be awarded any attorney or association of 491
attorneys who receive public funds from any source for their 492
services. Any action brought pursuant to this section shall 493
be set for hearing as soon as practicable after the cause is 494
at issue. 495
9. If in any action, including a class action, the 496
court issues an order requiring a taxing authority to revise 497
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the tax rates as provided in this section or enjoins a 498
taxing authority from the collection of a tax because of its 499
failure to revise the rate of levy as provided in this 500
section, any taxpayer paying his or her taxes when an 501
improper rate is applied has erroneously paid his or her 502
taxes in part, whether or not the taxes are paid under 503
protest as provided in section 139.031 or otherwise 504
contested. The part of the taxes paid erroneously is the 505
difference in the amount produced by the original levy and 506
the amount produced by the revised levy. The township or 507
county collector of taxes or the collector of taxes in any 508
city shall refund the amount of the tax erroneously paid. 509
The taxing authority refusing to revise the rate of levy as 510
provided in this section shall make available to the 511
collector all funds necessary to make refunds pursuant to 512
this subsection. No taxpayer shall receive any interest on 513
any money erroneously paid by him or her pursuant to this 514
subsection. Effective in the 1994 tax year, nothing in this 515
section shall be construed to require a taxing authority to 516
refund any tax erroneously paid prior to or during the third 517
tax year preceding the current tax year. 518
10. Any rule or portion of a rule, as that term is 519
defined in section 536.010, that is created under the 520
authority delegated in this section shall become effective 521
only if it complies with and is subject to all of the 522
provisions of chapter 536 and, if applicable, section 523
536.028. This section and chapter 536 are nonseverable and 524
if any of the powers vested with the general assembly 525
pursuant to chapter 536 to review, to delay the effective 526
date, or to disapprove and annul a rule are subsequently 527
held unconstitutional, then the grant of rulemaking 528
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authority and any rule proposed or adopted after August 28, 529
2004, shall be invalid and void. 530
137.115. 1. All other laws to the contrary 1
notwithstanding, the assessor or the assessor's deputies in 2
all counties of this state including the City of St. Louis 3
shall annually make a list of all real and tangible personal 4
property taxable in the assessor's city, county, town or 5
district. Except as otherwise provided in subsection 3 of 6
this section and section 137.078, for all calendar years 7
ending on or before December 31, 2026, the assessor shall 8
annually assess all personal property at thirty-three and 9
one-third percent of its true value in money as of January 10
first of each calendar year. Except as otherwise provided 11
in subsection 3 of this section and section 137.078, for all 12
calendar years beginning on or after January 1, 2027, the 13
assessor shall annually assess all personal property at 14
thirty percent of its true value in money as of January 15
first of each calendar year. The assessor shall annually 16
assess all real property, including any new construction and 17
improvements to real property, and possessory interests in 18
real property at the percent of its true value in money set 19
in subsection 5 of this section. The true value in money of 20
any possessory interest in real property in subclass (3), 21
where such real property is on or lies within the ultimate 22
airport boundary as shown by a federal airport layout plan, 23
as defined by 14 CFR 151.5, of a commercial airport having a 24
FAR Part 139 certification and owned by a political 25
subdivision, shall be the otherwise applicable true value in 26
money of any such possessory interest in real property, less 27
the total dollar amount of costs paid by a party, other than 28
the political subdivision, towards any new construction or 29
improvements on such real property completed after January 30
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1, 2008, and which are included in the above-mentioned 31
possessory interest, regardless of the year in which such 32
costs were incurred or whether such costs were considered in 33
any prior year. The assessor shall annually assess all real 34
property in the following manner: new assessed values shall 35
be determined as of January first of each odd-numbered year 36
and shall be entered in the assessor's books; those same 37
assessed values shall apply in the following even-numbered 38
year, except for new construction and property improvements 39
which shall be valued as though they had been completed as 40
of January first of the preceding odd-numbered year. The 41
assessor may call at the office, place of doing business, or 42
residence of each person required by this chapter to list 43
property, and require the person to make a correct statement 44
of all taxable tangible personal property owned by the 45
person or under his or her care, charge or management, 46
taxable in the county. On or before January first of each 47
even-numbered year, the assessor shall prepare and submit a 48
two-year assessment maintenance plan to the county governing 49
body and the state tax commission for their respective 50
approval or modification. The county governing body shall 51
approve and forward such plan or its alternative to the plan 52
to the state tax commission by February first. If the 53
county governing body fails to forward the plan or its 54
alternative to the plan to the state tax commission by 55
February first, the assessor's plan shall be considered 56
approved by the county governing body. If the state tax 57
commission fails to approve a plan and if the state tax 58
commission and the assessor and the governing body of the 59
county involved are unable to resolve the differences, in 60
order to receive state cost-share funds outlined in section 61
137.750, the county or the assessor shall petition the 62
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administrative hearing commission, by May first, to decide 63
all matters in dispute regarding the assessment maintenance 64
plan. Upon agreement of the parties, the matter may be 65
stayed while the parties proceed with mediation or 66
arbitration upon terms agreed to by the parties. The final 67
decision of the administrative hearing commission shall be 68
subject to judicial review in the circuit court of the 69
county involved. In the event a valuation of subclass (1) 70
real property within any county with a charter form of 71
government, or within a city not within a county, is made by 72
a computer, computer-assisted method or a computer program, 73
the burden of proof, supported by clear, convincing and 74
cogent evidence to sustain such valuation, shall be on the 75
assessor at any hearing or appeal. In any such county, 76
unless the assessor proves otherwise, there shall be a 77
presumption that the assessment was made by a computer, 78
computer-assisted method or a computer program. Such 79
evidence shall include, but shall not be limited to, the 80
following: 81
(1) The findings of the assessor based on an appraisal 82
of the property by generally accepted appraisal techniques; 83
and 84
(2) The purchase prices from sales of at least three 85
comparable properties and the address or location thereof. 86
As used in this subdivision, the word "comparable" means 87
that: 88
(a) Such sale was closed at a date relevant to the 89
property valuation; and 90
(b) Such properties are not more than one mile from 91
the site of the disputed property, except where no similar 92
properties exist within one mile of the disputed property, 93
the nearest comparable property shall be used. Such 94
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property shall be within five hundred square feet in size of 95
the disputed property, and resemble the disputed property in 96
age, floor plan, number of rooms, and other relevant 97
characteristics. 98
2. Assessors in each county of this state and the City 99
of St. Louis may send personal property assessment forms 100
through the mail. 101
3. The following items of personal property shall each 102
constitute separate subclasses of tangible personal property 103
and shall be assessed and valued for the purposes of 104
taxation at the following percentages of their true value in 105
money: 106
(1) Grain and other agricultural crops in an 107
unmanufactured condition, one-half of one percent; 108
(2) Livestock, twelve percent; 109
(3) Farm machinery, twelve percent; 110
(4) Motor vehicles which are eligible for registration 111
as and are registered as historic motor vehicles pursuant to 112
section 301.131 and aircraft which are at least twenty-five 113
years old and which are used solely for noncommercial 114
purposes and are operated less than two hundred hours per 115
year or aircraft that are home built from a kit, five 116
percent; 117
(5) Poultry, twelve percent; 118
(6) Tools and equipment used for pollution control and 119
tools and equipment used in retooling for the purpose of 120
introducing new product lines or used for making 121
improvements to existing products by any company which is 122
located in a state enterprise zone and which is identified 123
by any standard industrial classification number cited in 124
subdivision (7) of section 135.200, twenty-five percent; and 125
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(7) Solar panels, racking systems, inverters, and 126
related solar equipment, components, materials, and supplies 127
installed in connection with solar photovoltaic energy 128
systems, as described in subdivision (46) of subsection 2 of 129
section 144.030, that were constructed and producing solar 130
energy prior to August 9, 2022, five percent. 131
4. The person listing the property shall enter a true 132
and correct statement of the property, in a printed blank 133
prepared for that purpose. The statement, after being 134
filled out, shall be signed and either affirmed or sworn to 135
as provided in section 137.155. The list shall then be 136
delivered to the assessor. 137
5. (1) All subclasses of real property, as such 138
subclasses are established in Section 4(b) of Article X of 139
the Missouri Constitution and defined in section 137.016, 140
shall be assessed at the following percentages of true value: 141
(a) For real property in subclass (1), nineteen 142
percent; 143
(b) For real property in subclass (2), twelve percent; 144
and 145
(c) For real property in subclass (3), thirty-two 146
percent. 147
(2) A taxpayer may apply to the county assessor, or, 148
if not located within a county, then the assessor of such 149
city, for the reclassification of such taxpayer's real 150
property if the use or purpose of such real property is 151
changed after such property is assessed under the provisions 152
of this chapter. If the assessor determines that such 153
property shall be reclassified, he or she shall determine 154
the assessment under this subsection based on the percentage 155
of the tax year that such property was classified in each 156
subclassification. 157
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6. Manufactured homes, as defined in section 700.010, 158
which are actually used as dwelling units shall be assessed 159
at the same percentage of true value as residential real 160
property for the purpose of taxation. The percentage of 161
assessment of true value for such manufactured homes shall 162
be the same as for residential real property. If the county 163
collector cannot identify or find the manufactured home when 164
attempting to attach the manufactured home for payment of 165
taxes owed by the manufactured home owner, the county 166
collector may request the county commission to have the 167
manufactured home removed from the tax books, and such 168
request shall be granted within thirty days after the 169
request is made; however, the removal from the tax books 170
does not remove the tax lien on the manufactured home if it 171
is later identified or found. For purposes of this section, 172
a manufactured home located in a manufactured home rental 173
park, rental community or on real estate not owned by the 174
manufactured home owner shall be considered personal 175
property. For purposes of this section, a manufactured home 176
located on real estate owned by the manufactured home owner 177
may be considered real property. 178
7. Each manufactured home assessed shall be considered 179
a parcel for the purpose of reimbursement pursuant to 180
section 137.750, unless the manufactured home is deemed to 181
be real estate as defined in subsection 7 of section 442.015 182
and assessed as a realty improvement to the existing real 183
estate parcel. 184
8. Any amount of tax due and owing based on the 185
assessment of a manufactured home shall be included on the 186
personal property tax statement of the manufactured home 187
owner unless the manufactured home is deemed to be real 188
estate as defined in subsection 7 of section 442.015, in 189
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which case the amount of tax due and owing on the assessment 190
of the manufactured home as a realty improvement to the 191
existing real estate parcel shall be included on the real 192
property tax statement of the real estate owner. 193
9. The assessor of each county and each city not 194
within a county shall use a nationally recognized automotive 195
trade publication such as the National Automobile Dealers' 196
Association Official Used Car Guide, Kelley Blue Book, 197
Edmunds, or other similar publication as the recommended 198
guide of information for determining the true value of motor 199
vehicles described in such publication. The state tax 200
commission shall select and make available to all assessors 201
which publication shall be used. The assessor of each 202
county and each city not within a county shall use the trade- 203
in value published in the current October issue of the 204
publication selected by the state tax commission. The 205
assessor shall not use a value that is greater than the 206
average trade-in value in determining the true value of the 207
motor vehicle without performing a physical inspection of 208
the motor vehicle. For vehicles two years old or newer from 209
a vehicle's model year, the assessor may use a value other 210
than average without performing a physical inspection of the 211
motor vehicle. In the absence of a listing for a particular 212
motor vehicle in such publication, the assessor shall use 213
such information or publications that, in the assessor's 214
judgment, will fairly estimate the true value in money of 215
the motor vehicle. For motor vehicles with a true value of 216
less than fifty thousand dollars as of January 1, 2025, the 217
assessor shall not assess such motor vehicle for an amount 218
greater than such motor vehicle was assessed in the previous 219
year, provided that such motor vehicle was properly assessed 220
in the previous year. 221
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10. Before the assessor may increase the assessed 222
valuation of any parcel of subclass (1) real property by 223
more than fifteen percent since the last assessment, 224
excluding increases due to new construction or improvements, 225
the assessor shall conduct a physical inspection of such 226
property. 227
11. If a physical inspection is required, pursuant to 228
subsection 10 of this section, the assessor shall notify the 229
property owner of that fact in writing and shall provide the 230
owner clear written notice of the owner's rights relating to 231
the physical inspection. If a physical inspection is 232
required, the property owner may request that an interior 233
inspection be performed during the physical inspection. The 234
owner shall have no less than thirty days to notify the 235
assessor of a request for an interior physical inspection. 236
12. A physical inspection, as required by subsection 237
10 of this section, shall include, but not be limited to, an 238
on-site personal observation and review of all exterior 239
portions of the land and any buildings and improvements to 240
which the inspector has or may reasonably and lawfully gain 241
external access, and shall include an observation and review 242
of the interior of any buildings or improvements on the 243
property upon the timely request of the owner pursuant to 244
subsection 11 of this section. Mere observation of the 245
property via a drive-by inspection or the like shall not be 246
considered sufficient to constitute a physical inspection as 247
required by this section. 248
13. A county or city collector may accept credit cards 249
as proper form of payment of outstanding property tax or 250
license due. No county or city collector may charge 251
surcharge for payment by credit card which exceeds the fee 252
or surcharge charged by the credit card bank, processor, or 253
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issuer for its service. A county or city collector may 254
accept payment by electronic transfers of funds in payment 255
of any tax or license and charge the person making such 256
payment a fee equal to the fee charged the county by the 257
bank, processor, or issuer of such electronic payment. 258
14. Any county or city not within a county in this 259
state may, by an affirmative vote of the governing body of 260
such county, opt out of the provisions of this section and 261
sections 137.073, 138.060, and 138.100 as enacted by house 262
bill no. 1150 of the ninety-first general assembly, second 263
regular session and section 137.073 as modified by house 264
committee substitute for senate substitute for senate 265
committee substitute for senate bill no. 960, ninety-second 266
general assembly, second regular session, for the next year 267
of the general reassessment, prior to January first of any 268
year. No county or city not within a county shall exercise 269
this opt-out provision after implementing the provisions of 270
this section and sections 137.073, 138.060, and 138.100 as 271
enacted by house bill no. 1150 of the ninety-first general 272
assembly, second regular session and section 137.073 as 273
modified by house committee substitute for senate substitute 274
for senate committee substitute for senate bill no. 960, 275
ninety-second general assembly, second regular session, in a 276
year of general reassessment. For the purposes of applying 277
the provisions of this subsection, a political subdivision 278
contained within two or more counties where at least one of 279
such counties has opted out and at least one of such 280
counties has not opted out shall calculate a single tax rate 281
as in effect prior to the enactment of house bill no. 1150 282
of the ninety-first general assembly, second regular 283
session. A governing body of a city not within a county or 284
a county that has opted out under the provisions of this 285
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subsection may choose to implement the provisions of this 286
section and sections 137.073, 138.060, and 138.100 as 287
enacted by house bill no. 1150 of the ninety-first general 288
assembly, second regular session, and section 137.073 as 289
modified by house committee substitute for senate substitute 290
for senate committee substitute for senate bill no. 960, 291
ninety-second general assembly, second regular session, for 292
the next year of general reassessment, by an affirmative 293
vote of the governing body prior to December thirty-first of 294
any year. 295
15. The governing body of any city of the third 296
classification with more than twenty-six thousand three 297
hundred but fewer than twenty-six thousand seven hundred 298
inhabitants located in any county that has exercised its 299
authority to opt out under subsection 14 of this section may 300
levy separate and differing tax rates for real and personal 301
property only if such city bills and collects its own 302
property taxes or satisfies the entire cost of the billing 303
and collection of such separate and differing tax rates. 304
Such separate and differing rates shall not exceed such 305
city's tax rate ceiling. 306
16. Any portion of real property that is available as 307
reserve for strip, surface, or coal mining for minerals for 308
purposes of excavation for future use or sale to others that 309
has not been bonded and permitted under chapter 444 shall be 310
assessed based upon how the real property is currently being 311
used. Any information provided to a county assessor, state 312
tax commission, state agency, or political subdivision 313
responsible for the administration of tax policies shall, in 314
the performance of its duties, make available all books, 315
records, and information requested, except such books, 316
records, and information as are by law declared confidential 317
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in nature, including individually identifiable information 318
regarding a specific taxpayer or taxpayer's mine property. 319
For purposes of this subsection, "mine property" shall mean 320
all real property that is in use or readily available as a 321
reserve for strip, surface, or coal mining for minerals for 322
purposes of excavation for current or future use or sale to 323
others that has been bonded and permitted under chapter 444. 324
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