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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. 1293
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NICOLA.
5594S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.073, 137.079, and 137.115, RSMo, and to enact in lieu thereof four new
sections relating to property taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.073, 137.079, and 137.115, RSMo, 1
are repealed and four new sections enacted in lieu thereof, to 2
be known as sections 137.067, 137.073, 137.079, and 137.115, to 3
read as follows:4
137.067. Notwithstanding any other provision of law to 1
the contrary, any ballot measure seeking approval to add, 2
change, or modify a tax on real property shall express the 3
effect of the proposed change within the ballot language in 4
terms of the change in real dollars owed per one hundred 5
thousand dollars of a property's market valuation. 6
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
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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
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
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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
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
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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
rates of levy for each subclass of real property, 78
individually, and personal property, in the aggregate, shall 79
not exceed the greater of the most recent voter-approved 80
rate or the most recent voter-approved rate as adjusted 81
under subdivision (2) of subsection 5 of this section. Any 82
political subdivision that has received approval from voters 83
for a tax increase after August 27, 2008, may levy a rate to 84
collect substantially the same amount of tax revenue as the 85
amount of revenue that would have been derived by applying 86
the voter-approved increased tax rate ceiling to the total 87
assessed valuation of the political subdivision as most 88
recently certified by the city or county clerk on or before 89
the date of the election in which such increase is approved, 90
increased by the percentage increase in the consumer price 91
index, as provided by law, except that the rate shall not 92
exceed the greater of the most recent voter-approved rate or 93
the most recent voter-approved rate as adjusted under 94
subdivision (2) of subsection 5 of this section. Such tax 95
revenue shall not include any receipts from ad valorem 96
levies on any real property which was assessed by the 97
assessor of a county or city in such previous year but is 98
assessed by the assessor of a county or city in the current 99
year in a different subclass of real property. Where the 100
taxing authority is a school district for the purposes of 101
revising the applicable rates of levy for each subclass of 102
real property, the tax revenues from state-assessed railroad 103
and utility property shall be apportioned and attributed to 104
each subclass of real property based on the percentage of 105
the total assessed valuation of the county that each 106
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subclass of real property represents in the current 107
[taxable] tax year. As provided in Section 22 of Article X 108
of the constitution, a political subdivision may also revise 109
each levy to allow for inflationary assessment growth 110
occurring within the political subdivision. The 111
inflationary growth factor for any such subclass of real 112
property or personal property shall be limited to the actual 113
assessment growth in such subclass or class, exclusive of 114
new construction and improvements, and exclusive of the 115
assessed value on any real property which was assessed by 116
the assessor of a county or city in the current year in a 117
different subclass of real property, but not to exceed the 118
consumer price index or five percent, whichever is lower. 119
[Should the tax revenue of a political subdivision from the 120
various tax rates determined in this subsection be different 121
than the tax revenue that would have been determined from a 122
single tax rate as calculated pursuant to the method of 123
calculation in this subsection prior to January 1, 2003, 124
then the political subdivision shall revise the tax rates of 125
those subclasses of real property, individually, and/or 126
personal property, in the aggregate, in which there is a tax 127
rate reduction, pursuant to the provisions of this 128
subsection. Such revision shall yield an amount equal to 129
such difference and shall be apportioned among such 130
subclasses of real property, individually, and/or personal 131
property, in the aggregate, based on the relative assessed 132
valuation of the class or subclasses of property 133
experiencing a tax rate reduction. Such revision in the tax 134
rates of each class or subclass shall be made by computing 135
the percentage of current year adjusted assessed valuation 136
of each class or subclass with a tax rate reduction to the 137
total current year adjusted assessed valuation of the class 138
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or subclasses with a tax rate reduction, multiplying the 139
resulting percentages by the revenue difference between the 140
single rate calculation and the calculations pursuant to 141
this subsection and dividing by the respective adjusted 142
current year assessed valuation of each class or subclass to 143
determine the adjustment to the rate to be levied upon each 144
class or subclass of property. The adjustment computed 145
herein shall be multiplied by one hundred, rounded to four 146
decimals in the manner provided in this subsection, and 147
added to the initial rate computed for each class or 148
subclass of property. For school districts that levy 149
separate tax rates on each subclass of real property and 150
personal property in the aggregate, if voters approved a 151
ballot before January 1, 2011, that presented separate 152
stated tax rates to be applied to the different subclasses 153
of real property and personal property in the aggregate, or 154
increases the separate rates that may be levied on the 155
different subclasses of real property and personal property 156
in the aggregate by different amounts, the tax rate that 157
shall be used for the single tax rate calculation shall be a 158
blended rate, calculated in the manner provided under 159
subdivision (1) of subsection 6 of this section. 160
Notwithstanding any provision of this subsection to the 161
contrary, no revision to the rate of levy for personal 162
property shall cause such levy to increase over the levy for 163
personal property from the prior year.] 164
3. (1) Where the taxing authority is a school 165
district, it shall be required to revise the rates of levy 166
to the extent necessary to produce from all taxable 167
property, including state-assessed railroad and utility 168
property, which shall be separately estimated in addition to 169
other data required in complying with section 164.011, 170
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substantially the amount of tax revenue permitted in this 171
section. In the year following tax rate reduction, the tax 172
rate ceiling may be adjusted to offset such district's 173
reduction in the apportionment of state school moneys due to 174
its reduced tax rate. However, in the event any school 175
district, in calculating a tax rate ceiling pursuant to this 176
section, requiring the estimating of effects of state- 177
assessed railroad and utility valuation or loss of state 178
aid, discovers that the estimates used result in receipt of 179
excess revenues, which would have required a lower rate if 180
the actual information had been known, the school district 181
shall reduce the tax rate ceiling in the following year to 182
compensate for the excess receipts, and the recalculated 183
rate shall become the tax rate ceiling for purposes of this 184
section. 185
(2) For any political subdivision which experiences a 186
reduction in the amount of assessed valuation relating to a 187
prior year, due to decisions of the state tax commission or 188
a court pursuant to sections 138.430 to 138.433, or due to 189
clerical errors or corrections in the calculation or 190
recordation of any assessed valuation: 191
(a) Such political subdivision may revise the tax rate 192
ceiling for each purpose it levies taxes to compensate for 193
the reduction in assessed value occurring after the 194
political subdivision calculated the tax rate ceiling for 195
the particular subclass of real property or for personal 196
property, in the aggregate, in a prior year. Such revision 197
by the political subdivision shall be made at the time of 198
the next calculation of the tax rate for the particular 199
subclass of real property or for personal property, in the 200
aggregate, after the reduction in assessed valuation has 201
been determined and shall be calculated in a manner that 202
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results in the revised tax rate ceiling being the same as it 203
would have been had the corrected or finalized assessment 204
been available at the time of the prior calculation; 205
(b) In addition, for up to three years following the 206
determination of the reduction in assessed valuation as a 207
result of circumstances defined in this subdivision, such 208
political subdivision may levy a tax rate for each purpose 209
it levies taxes above the revised tax rate ceiling provided 210
in paragraph (a) of this subdivision to recoup any revenues 211
it was entitled to receive had the corrected or finalized 212
assessment been available at the time of the prior 213
calculation. 214
4. (1) In order to implement the provisions of this 215
section and Section 22 of Article X of the Constitution of 216
Missouri, the term improvements shall apply to [both] real 217
[and personal] property. In order to determine the value of 218
new construction and improvements, each county assessor 219
shall maintain a record of real property valuations in such 220
a manner as to identify each year the increase in valuation 221
for each political subdivision in the county as a result of 222
new construction and improvements. The value of new 223
construction and improvements shall include the additional 224
assessed value of all improvements or additions to real 225
property which were begun after and were not part of the 226
prior year's assessment, except that the additional assessed 227
value of all improvements or additions to real property 228
which had been totally or partially exempt from ad valorem 229
taxes pursuant to sections 99.800 to 99.865, sections 230
135.200 to 135.255, and section 353.110 shall be included in 231
the value of new construction and improvements when the 232
property becomes totally or partially subject to assessment 233
and payment of all ad valorem taxes. [The aggregate 234
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increase in valuation of personal property for the current 235
year over that of the previous year is the equivalent of the 236
new construction and improvements factor for personal 237
property. Notwithstanding any opt-out implemented pursuant 238
to subsection 14 of section 137.115,] the assessor shall 239
certify the amount of new construction and improvements and 240
the amount of assessed value on any real property which was 241
assessed by the assessor of a county or city in such 242
previous year but is assessed by the assessor of a county or 243
city in the current year in a different subclass of real 244
property separately for each of the three subclasses of real 245
property for each political subdivision to the county clerk 246
in order that political subdivisions shall have this 247
information for the purpose of calculating tax rates 248
pursuant to this section and Section 22, Article X, 249
Constitution of Missouri. In addition, the state tax 250
commission shall certify each year to each county clerk the 251
increase in the general price level as measured by the 252
Consumer Price Index for All Urban Consumers for the United 253
States, or its successor publications, as defined and 254
officially reported by the United States Department of 255
Labor, or its successor agency. The state tax commission 256
shall certify the increase in such index on the latest 257
twelve-month basis available on February first of each year 258
over the immediately preceding prior twelve-month period in 259
order that political subdivisions shall have this 260
information available in setting their tax rates according 261
to law and Section 22 of Article X of the Constitution of 262
Missouri. For purposes of implementing the provisions of 263
this section and Section 22 of Article X of the Missouri 264
Constitution, the term "property" means all taxable 265
property, including state-assessed property. 266
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(2) Each political subdivision required to revise 267
rates of levy pursuant to this section or Section 22 of 268
Article X of the Constitution of Missouri shall calculate 269
each tax rate it is authorized to levy and, in establishing 270
each tax rate, shall consider each provision for tax rate 271
revision provided in this section and Section 22 of Article 272
X of the Constitution of Missouri, separately and without 273
regard to annual tax rate reductions provided in section 274
67.505 and section 164.013. Each political subdivision 275
shall set each tax rate it is authorized to levy using the 276
calculation that produces the lowest tax rate ceiling. It 277
is further the intent of the general assembly, pursuant to 278
the authority of Section 10(c) of Article X of the 279
Constitution of Missouri, that the provisions of such 280
section be applicable to tax rate revisions mandated 281
pursuant to Section 22 of Article X of the Constitution of 282
Missouri as to reestablishing tax rates as revised in 283
subsequent years, enforcement provisions, and other 284
provisions not in conflict with Section 22 of Article X of 285
the Constitution of Missouri. Annual tax rate reductions 286
provided in section 67.505 and section 164.013 shall be 287
applied to the tax rate as established pursuant to this 288
section and Section 22 of Article X of the Constitution of 289
Missouri, unless otherwise provided by law. 290
5. (1) In all political subdivisions, the tax rate 291
ceiling established pursuant to this section shall not be 292
increased unless approved by a vote of the people. Approval 293
of the higher tax rate shall be by at least a majority of 294
votes cast. When a proposed higher tax rate requires 295
approval by more than a simple majority pursuant to any 296
provision of law or the constitution, the tax rate increase 297
must receive approval by at least the majority required. 298
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Notwithstanding any other provision of law to the contrary, 299
all tax levy increases applied to any real and personal 300
property shall be applied to each subclass of property 301
equally. 302
(2) When voters approve an increase in the tax rate, 303
the amount of the increase shall be added to the tax rate 304
ceiling as calculated pursuant to this section to the extent 305
the total rate does not exceed any maximum rate prescribed 306
by law. If a ballot question presents a stated tax rate for 307
approval rather than describing the amount of increase in 308
the question, the stated tax rate approved shall be adjusted 309
as provided in this section and, so adjusted, shall be the 310
current tax rate ceiling. The increased tax rate ceiling as 311
approved shall be adjusted such that when applied to the 312
current total assessed valuation of the political 313
subdivision, excluding new construction and improvements 314
since the date of the election approving such increase, the 315
revenue derived from the adjusted tax rate ceiling is equal 316
to the sum of: the amount of revenue which would have been 317
derived by applying the voter-approved increased tax rate 318
ceiling to total assessed valuation of the political 319
subdivision, as most recently certified by the city or 320
county clerk on or before the date of the election in which 321
such increase is approved, increased by the percentage 322
increase in the consumer price index, as provided by law. 323
Such adjusted tax rate ceiling may be applied to the total 324
assessed valuation of the political subdivision at the 325
setting of the next tax rate. If a ballot question presents 326
a phased-in tax rate increase, upon voter approval, each tax 327
rate increase shall be adjusted in the manner prescribed in 328
this section to yield the sum of: the amount of revenue 329
that would be derived by applying such voter-approved 330
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increased rate to the total assessed valuation, as most 331
recently certified by the city or county clerk on or before 332
the date of the election in which such increase was 333
approved, increased by the percentage increase in the 334
consumer price index, as provided by law, from the date of 335
the election to the time of such increase and, so adjusted, 336
shall be the current tax rate ceiling. 337
(3) Notwithstanding the provisions of subdivision (2) 338
of this subsection to the contrary, if prior to the 339
expiration of a temporary levy increase, voters approve a 340
subsequent levy increase, the new tax rate ceiling shall 341
remain in effect only until such time as the temporary levy 342
expires under the terms originally approved by a vote of the 343
people, at which time the tax rate ceiling shall be 344
decreased by the amount of the temporary levy increase. If, 345
prior to the expiration of a temporary levy increase, voters 346
of a political subdivision are asked to approve an 347
additional, permanent increase to the political 348
subdivision's tax rate ceiling, voters shall be submitted 349
ballot language that clearly indicates that if the permanent 350
levy increase is approved, the temporary levy shall be made 351
permanent. 352
(4) The governing body of any political subdivision 353
may levy a tax rate lower than its tax rate ceiling [and]. 354
Such reduction to the tax rate ceiling in a nonreassessment 355
year shall be applied in the immediately following year of 356
general reassessment. The governing body of any political 357
subdivision may, in a nonreassessment year, increase that 358
previously lowered tax rate to a level not exceeding the tax 359
rate ceiling without voter approval in the manner provided 360
under subdivision [(4)] (5) of this subsection. Such 361
increase to the tax rate ceiling in a nonreassessment year 362
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shall be applied in the immediately following year of 363
general reassessment. Nothing in this section shall be 364
construed as prohibiting a political subdivision from 365
voluntarily levying a tax rate lower than that which is 366
required under the provisions of this section or from 367
seeking voter approval of a reduction to such political 368
subdivision's tax rate ceiling. 369
[(4)] (5) In a year of general reassessment, a 370
governing body whose tax rate is lower than its tax rate 371
ceiling shall revise its tax rate pursuant to the provisions 372
of subsection 4 of this section as if its tax rate was at 373
the tax rate ceiling. In a year following general 374
reassessment, if such governing body intends to increase its 375
tax rate, the governing body shall conduct a public hearing, 376
and in a public meeting it shall adopt an ordinance, 377
resolution, or policy statement justifying its action prior 378
to setting and certifying its tax rate. The provisions of 379
this subdivision shall not apply to any political 380
subdivision which levies a tax rate lower than its tax rate 381
ceiling solely due to a reduction required by law resulting 382
from sales tax collections. The provisions of this 383
subdivision shall not apply to any political subdivision 384
which has received voter approval for an increase to its tax 385
rate ceiling subsequent to setting its most recent tax rate. 386
(6) (a) As used in this subdivision, the following 387
terms shall mean: 388
a. "Current tax rate ceiling", the tax rate ceiling in 389
effect before the voters approve a higher tax rate; 390
b. "Increased tax rate ceiling", the new tax rate 391
ceiling in effect after the voters approve a higher tax rate. 392
(b) Notwithstanding any other provision of law to the 393
contrary, when the required majority of voters in a 394
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political subdivision approves an increase in the political 395
subdivision's tax rate, the political subdivision shall use 396
the current tax rate ceiling and the increase approved by 397
the voters in establishing the rates of levy for the tax 398
year immediately following the election. 399
(c) If the assessed valuation of real property in such 400
political subdivision is reduced in such tax year 401
immediately following the election, such political 402
subdivision may raise its rates of levy so that the revenue 403
received from its local real property tax rates equals the 404
amount the political subdivision would have received from 405
the increased rates of levy had there been no reduction in 406
the assessed valuation of real property in the political 407
subdivision. 408
(d) Using the increased tax rate ceiling shall be 409
revenue neutral as required in Article X, Section 22 of the 410
Constitution of Missouri. 411
6. (1) For the purposes of calculating state aid for 412
public schools pursuant to section 163.031, each taxing 413
authority which is a school district shall determine its 414
proposed tax rate as a blended rate of the classes or 415
subclasses of property. Such blended rate shall be 416
calculated by first determining the total tax revenue of the 417
property within the jurisdiction of the taxing authority, 418
which amount shall be equal to the sum of the products of 419
multiplying the assessed valuation of each class and 420
subclass of property by the corresponding tax rate for such 421
class or subclass, then dividing the total tax revenue by 422
the total assessed valuation of the same jurisdiction, and 423
then multiplying the resulting quotient by a factor of one 424
hundred. Where the taxing authority is a school district, 425
such blended rate shall also be used by such school district 426
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for calculating revenue from state-assessed railroad and 427
utility property as defined in chapter 151 and for 428
apportioning the tax rate by purpose. 429
(2) Each taxing authority proposing to levy a tax rate 430
in any year shall notify the clerk of the county commission 431
in the county or counties where the tax rate applies of its 432
tax rate ceiling and its proposed tax rate. Each taxing 433
authority shall express its proposed tax rate in a fraction 434
equal to the nearest one-tenth of a cent, unless its 435
proposed tax rate is in excess of one dollar, then one/one- 436
hundredth of a cent. If a taxing authority shall round to 437
one/one-hundredth of a cent, it shall round up a fraction 438
greater than or equal to five/one-thousandth of one cent to 439
the next higher one/one-hundredth of a cent; if a taxing 440
authority shall round to one-tenth of a cent, it shall round 441
up a fraction greater than or equal to five/one-hundredths 442
of a cent to the next higher one-tenth of a cent. Any 443
taxing authority levying a property tax rate shall provide 444
data, in such form as shall be prescribed by the state 445
auditor by rule, substantiating such tax rate complies with 446
Missouri law. All forms for the calculation of rates 447
pursuant to this section shall be promulgated as a rule and 448
shall not be incorporated by reference. The state auditor 449
shall promulgate rules for any and all forms for the 450
calculation of rates pursuant to this section which do not 451
currently exist in rule form or that have been incorporated 452
by reference. In addition, each taxing authority proposing 453
to levy a tax rate for debt service shall provide data, in 454
such form as shall be prescribed by the state auditor by 455
rule, substantiating the tax rate for debt service complies 456
with Missouri law. A tax rate proposed for annual debt 457
service requirements will be prima facie valid if, after 458
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making the payment for which the tax was levied, bonds 459
remain outstanding and the debt fund reserves do not exceed 460
the following year's payments. The county clerk shall keep 461
on file and available for public inspection all such 462
information for a period of three years. The clerk shall, 463
within three days of receipt, forward a copy of the notice 464
of a taxing authority's tax rate ceiling and proposed tax 465
rate and any substantiating data to the state auditor. The 466
state auditor shall, within fifteen days of the date of 467
receipt, examine such information and return to the county 468
clerk his or her findings as to compliance of the tax rate 469
ceiling with this section and as to compliance of any 470
proposed tax rate for debt service with Missouri law. If 471
the state auditor believes that a taxing authority's 472
proposed tax rate does not comply with Missouri law, then 473
the state auditor's findings shall include a recalculated 474
tax rate, and the state auditor may request a taxing 475
authority to submit documentation supporting such taxing 476
authority's proposed tax rate. The county clerk shall 477
immediately forward a copy of the auditor's findings to the 478
taxing authority and shall file a copy of the findings with 479
the information received from the taxing authority. The 480
taxing authority shall have fifteen days from the date of 481
receipt from the county clerk of the state auditor's 482
findings and any request for supporting documentation to 483
accept or reject in writing the rate change certified by the 484
state auditor and to submit all requested information to the 485
state auditor. A copy of the taxing authority's acceptance 486
or rejection and any information submitted to the state 487
auditor shall also be mailed to the county clerk. If a 488
taxing authority rejects a rate change certified by the 489
state auditor and the state auditor does not receive 490
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supporting information which justifies the taxing 491
authority's original or any subsequent proposed tax rate, 492
then the state auditor shall refer the perceived violations 493
of such taxing authority to the attorney general's office 494
and the attorney general is authorized to obtain injunctive 495
relief to prevent the taxing authority from levying a 496
violative tax rate. 497
(3) In the event that the taxing authority incorrectly 498
completes the forms created and promulgated under 499
subdivision (2) of this subsection, or makes a clerical 500
error, the taxing authority may submit amended forms with an 501
explanation for the needed changes. If such amended forms 502
are filed under regulations prescribed by the state auditor, 503
the state auditor shall take into consideration such amended 504
forms for the purposes of this subsection. 505
7. No tax rate shall be extended on the tax rolls by 506
the county clerk unless the political subdivision has 507
complied with the foregoing provisions of this section. 508
8. Whenever a taxpayer has cause to believe that a 509
taxing authority has not complied with the provisions of 510
this section, the taxpayer may make a formal complaint with 511
the prosecuting attorney of the county. Where the 512
prosecuting attorney fails to bring an action within ten 513
days of the filing of the complaint, the taxpayer may bring 514
a civil action pursuant to this section and institute an 515
action as representative of a class of all taxpayers within 516
a taxing authority if the class is so numerous that joinder 517
of all members is impracticable, if there are questions of 518
law or fact common to the class, if the claims or defenses 519
of the representative parties are typical of the claims or 520
defenses of the class, and if the representative parties 521
will fairly and adequately protect the interests of the 522
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class. In any class action maintained pursuant to this 523
section, the court may direct to the members of the class a 524
notice to be published at least once each week for four 525
consecutive weeks in a newspaper of general circulation 526
published in the county where the civil action is commenced 527
and in other counties within the jurisdiction of a taxing 528
authority. The notice shall advise each member that the 529
court will exclude him or her from the class if he or she so 530
requests by a specified date, that the judgment, whether 531
favorable or not, will include all members who do not 532
request exclusion, and that any member who does not request 533
exclusion may, if he or she desires, enter an appearance. 534
In any class action brought pursuant to this section, the 535
court, in addition to the relief requested, shall assess 536
against the taxing authority found to be in violation of 537
this section the reasonable costs of bringing the action, 538
including reasonable attorney's fees, provided no attorney's 539
fees shall be awarded any attorney or association of 540
attorneys who receive public funds from any source for their 541
services. Any action brought pursuant to this section shall 542
be set for hearing as soon as practicable after the cause is 543
at issue. 544
9. If in any action, including a class action, the 545
court issues an order requiring a taxing authority to revise 546
the tax rates as provided in this section or enjoins a 547
taxing authority from the collection of a tax because of its 548
failure to revise the rate of levy as provided in this 549
section, any taxpayer paying his or her taxes when an 550
improper rate is applied has erroneously paid his or her 551
taxes in part, whether or not the taxes are paid under 552
protest as provided in section 139.031 or otherwise 553
contested. The part of the taxes paid erroneously is the 554
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difference in the amount produced by the original levy and 555
the amount produced by the revised levy. The township or 556
county collector of taxes or the collector of taxes in any 557
city shall refund the amount of the tax erroneously paid. 558
The taxing authority refusing to revise the rate of levy as 559
provided in this section shall make available to the 560
collector all funds necessary to make refunds pursuant to 561
this subsection. No taxpayer shall receive any interest on 562
any money erroneously paid by him or her pursuant to this 563
subsection. Effective in the 1994 tax year, nothing in this 564
section shall be construed to require a taxing authority to 565
refund any tax erroneously paid prior to or during the third 566
tax year preceding the current tax year. 567
10. Any rule or portion of a rule, as that term is 568
defined in section 536.010, that is created under the 569
authority delegated in this section shall become effective 570
only if it complies with and is subject to all of the 571
provisions of chapter 536 and, if applicable, section 572
536.028. This section and chapter 536 are nonseverable and 573
if any of the powers vested with the general assembly 574
pursuant to chapter 536 to review, to delay the effective 575
date, or to disapprove and annul a rule are subsequently 576
held unconstitutional, then the grant of rulemaking 577
authority and any rule proposed or adopted after August 28, 578
2004, shall be invalid and void. 579
137.079. Prior to setting its [rate or] rates as 1
required by section 137.073, each taxing authority shall 2
exclude from its total assessed valuation seventy-two 3
percent of the total amount of assessed value of business 4
personal property that is the subject of an appeal at the 5
state tax commission or in a court of competent jurisdiction 6
in this state. This exclusion shall only apply to the 7
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portion of the assessed value of business personal property 8
that is disputed in the appeal, and shall not exclude any 9
portion of the same property that is not disputed. [If the 10
taxing authority uses a multirate approach] For the purpose 11
of setting rates as provided in section 137.073, this 12
exclusion shall be made from the personal property class. 13
The state tax commission shall provide each taxing authority 14
with the total assessed value of business personal property 15
within the jurisdiction of such taxing authority for which 16
an appeal is pending no later than August twentieth of each 17
year. Whenever any appeal is resolved, whether by final 18
adjudication or settlement, and the result of the appeal 19
causes money to be paid to the taxing authority, the taxing 20
authority shall not be required to make an additional 21
adjustment to its rate or rates due to such payment once the 22
deadline for setting its rates, as provided by this chapter, 23
has passed in a taxable year, but shall adjust its rate or 24
rates due to such payment in the next rate setting cycle to 25
offset the payment in the next taxable year. For the 26
purposes of this section, the term "business personal 27
property" means tangible personal property which is used in 28
a trade or business or used for production of income and 29
which has a determinable life of longer than one year except 30
that supplies used by a business shall also be considered 31
business personal property, but shall not include livestock, 32
farm machinery, property subject to the motor vehicle 33
registration provisions of chapter 301, property subject to 34
the tables provided in section 137.078, the property of 35
rural electric cooperatives under chapter 394, or property 36
assessed by the state tax commission under chapters 151, 37
153, and 155, section 137.022, and sections 137.1000 to 38
137.1030. 39
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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, the assessor shall 7
annually assess all personal property at thirty-three and 8
one-third percent of its true value in money as of January 9
first of each calendar year. The assessor shall annually 10
assess all real property, including any new construction and 11
improvements to real property, and possessory interests in 12
real property at the percent of its true value in money set 13
in subsection 5 of this section. The true value in money of 14
any possessory interest in real property in subclass (3), 15
where such real property is on or lies within the ultimate 16
airport boundary as shown by a federal airport layout plan, 17
as defined by 14 CFR 151.5, of a commercial airport having a 18
FAR Part 139 certification and owned by a political 19
subdivision, shall be the otherwise applicable true value in 20
money of any such possessory interest in real property, less 21
the total dollar amount of costs paid by a party, other than 22
the political subdivision, towards any new construction or 23
improvements on such real property completed after January 24
1, 2008, and which are included in the above-mentioned 25
possessory interest, regardless of the year in which such 26
costs were incurred or whether such costs were considered in 27
any prior year. The assessor shall annually assess all real 28
property in the following manner: new assessed values shall 29
be determined as of January first of each odd-numbered year 30
and shall be entered in the assessor's books; those same 31
assessed values shall apply in the following even-numbered 32
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year, except for new construction and property improvements 33
which shall be valued as though they had been completed as 34
of January first of the preceding odd-numbered year. The 35
assessor may call at the office, place of doing business, or 36
residence of each person required by this chapter to list 37
property, and require the person to make a correct statement 38
of all taxable tangible personal property owned by the 39
person or under his or her care, charge or management, 40
taxable in the county. On or before January first of each 41
even-numbered year, the assessor shall prepare and submit a 42
two-year assessment maintenance plan to the county governing 43
body and the state tax commission for their respective 44
approval or modification. The county governing body shall 45
approve and forward such plan or its alternative to the plan 46
to the state tax commission by February first. If the 47
county governing body fails to forward the plan or its 48
alternative to the plan to the state tax commission by 49
February first, the assessor's plan shall be considered 50
approved by the county governing body. If the state tax 51
commission fails to approve a plan and if the state tax 52
commission and the assessor and the governing body of the 53
county involved are unable to resolve the differences, in 54
order to receive state cost-share funds outlined in section 55
137.750, the county or the assessor shall petition the 56
administrative hearing commission, by May first, to decide 57
all matters in dispute regarding the assessment maintenance 58
plan. Upon agreement of the parties, the matter may be 59
stayed while the parties proceed with mediation or 60
arbitration upon terms agreed to by the parties. The final 61
decision of the administrative hearing commission shall be 62
subject to judicial review in the circuit court of the 63
county involved. In the event a valuation of subclass (1) 64
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real property within any county with a charter form of 65
government, or within a city not within a county, is made by 66
a computer, computer-assisted method or a computer program, 67
the burden of proof, supported by clear, convincing and 68
cogent evidence to sustain such valuation, shall be on the 69
assessor at any hearing or appeal. In any such county, 70
unless the assessor proves otherwise, there shall be a 71
presumption that the assessment was made by a computer, 72
computer-assisted method or a computer program. Such 73
evidence shall include, but shall not be limited to, the 74
following: 75
(1) The findings of the assessor based on an appraisal 76
of the property by generally accepted appraisal techniques; 77
and 78
(2) The purchase prices from sales of at least three 79
comparable properties and the address or location thereof. 80
As used in this subdivision, the word "comparable" means 81
that: 82
(a) Such sale was closed at a date relevant to the 83
property valuation; and 84
(b) Such properties are not more than one mile from 85
the site of the disputed property, except where no similar 86
properties exist within one mile of the disputed property, 87
the nearest comparable property shall be used. Such 88
property shall be within five hundred square feet in size of 89
the disputed property, and resemble the disputed property in 90
age, floor plan, number of rooms, and other relevant 91
characteristics. 92
2. Assessors in each county of this state and the City 93
of St. Louis may send personal property assessment forms 94
through the mail. 95
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3. The following items of personal property shall each 96
constitute separate subclasses of tangible personal property 97
and shall be assessed and valued for the purposes of 98
taxation at the following percentages of their true value in 99
money: 100
(1) Grain and other agricultural crops in an 101
unmanufactured condition, one-half of one percent; 102
(2) Livestock, twelve percent; 103
(3) Farm machinery, twelve percent; 104
(4) Motor vehicles which are eligible for registration 105
as and are registered as historic motor vehicles pursuant to 106
section 301.131 and aircraft which are at least twenty-five 107
years old and which are used solely for noncommercial 108
purposes and are operated less than two hundred hours per 109
year or aircraft that are home built from a kit, five 110
percent; 111
(5) Poultry, twelve percent; 112
(6) Tools and equipment used for pollution control and 113
tools and equipment used in retooling for the purpose of 114
introducing new product lines or used for making 115
improvements to existing products by any company which is 116
located in a state enterprise zone and which is identified 117
by any standard industrial classification number cited in 118
subdivision (7) of section 135.200, twenty-five percent; and 119
(7) Solar panels, racking systems, inverters, and 120
related solar equipment, components, materials, and supplies 121
installed in connection with solar photovoltaic energy 122
systems, as described in subdivision (46) of subsection 2 of 123
section 144.030, that were constructed and producing solar 124
energy prior to August 9, 2022, five percent. 125
4. The person listing the property shall enter a true 126
and correct statement of the property, in a printed blank 127
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prepared for that purpose. The statement, after being 128
filled out, shall be signed and either affirmed or sworn to 129
as provided in section 137.155. The list shall then be 130
delivered to the assessor. 131
5. (1) All subclasses of real property, as such 132
subclasses are established in Section 4(b) of Article X of 133
the Missouri Constitution and defined in section 137.016, 134
shall be assessed at the following percentages of true value: 135
(a) For real property in subclass (1), nineteen 136
percent; 137
(b) For real property in subclass (2), twelve percent; 138
and 139
(c) For real property in subclass (3), thirty-two 140
percent. 141
(2) A taxpayer may apply to the county assessor, or, 142
if not located within a county, then the assessor of such 143
city, for the reclassification of such taxpayer's real 144
property if the use or purpose of such real property is 145
changed after such property is assessed under the provisions 146
of this chapter. If the assessor determines that such 147
property shall be reclassified, he or she shall determine 148
the assessment under this subsection based on the percentage 149
of the tax year that such property was classified in each 150
subclassification. 151
6. Manufactured homes, as defined in section 700.010, 152
which are actually used as dwelling units shall be assessed 153
at the same percentage of true value as residential real 154
property for the purpose of taxation. The percentage of 155
assessment of true value for such manufactured homes shall 156
be the same as for residential real property. If the county 157
collector cannot identify or find the manufactured home when 158
attempting to attach the manufactured home for payment of 159
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taxes owed by the manufactured home owner, the county 160
collector may request the county commission to have the 161
manufactured home removed from the tax books, and such 162
request shall be granted within thirty days after the 163
request is made; however, the removal from the tax books 164
does not remove the tax lien on the manufactured home if it 165
is later identified or found. For purposes of this section, 166
a manufactured home located in a manufactured home rental 167
park, rental community or on real estate not owned by the 168
manufactured home owner shall be considered personal 169
property. For purposes of this section, a manufactured home 170
located on real estate owned by the manufactured home owner 171
may be considered real property. 172
7. Each manufactured home assessed shall be considered 173
a parcel for the purpose of reimbursement pursuant to 174
section 137.750, unless the manufactured home is deemed to 175
be real estate as defined in subsection 7 of section 442.015 176
and assessed as a realty improvement to the existing real 177
estate parcel. 178
8. Any amount of tax due and owing based on the 179
assessment of a manufactured home shall be included on the 180
personal property tax statement of the manufactured home 181
owner unless the manufactured home is deemed to be real 182
estate as defined in subsection 7 of section 442.015, in 183
which case the amount of tax due and owing on the assessment 184
of the manufactured home as a realty improvement to the 185
existing real estate parcel shall be included on the real 186
property tax statement of the real estate owner. 187
9. The assessor of each county and each city not 188
within a county shall use a nationally recognized automotive 189
trade publication such as the National Automobile Dealers' 190
Association Official Used Car Guide, Kelley Blue Book, 191
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Edmunds, or other similar publication as the recommended 192
guide of information for determining the true value of motor 193
vehicles described in such publication. The state tax 194
commission shall select and make available to all assessors 195
which publication shall be used. The assessor of each 196
county and each city not within a county shall use the trade- 197
in value published in the current October issue of the 198
publication selected by the state tax commission. The 199
assessor shall not use a value that is greater than the 200
average trade-in value in determining the true value of the 201
motor vehicle without performing a physical inspection of 202
the motor vehicle. For vehicles two years old or newer from 203
a vehicle's model year, the assessor may use a value other 204
than average without performing a physical inspection of the 205
motor vehicle. In the absence of a listing for a particular 206
motor vehicle in such publication, the assessor shall use 207
such information or publications that, in the assessor's 208
judgment, will fairly estimate the true value in money of 209
the motor vehicle. For motor vehicles with a true value of 210
less than fifty thousand dollars as of January 1, 2025, the 211
assessor shall not assess such motor vehicle for an amount 212
greater than such motor vehicle was assessed in the previous 213
year, provided that such motor vehicle was properly assessed 214
in the previous year. 215
10. Before the assessor may increase the assessed 216
valuation of any parcel of subclass (1) real property by 217
more than fifteen percent since the last assessment, 218
excluding increases due to new construction or improvements, 219
the assessor shall conduct a physical inspection of such 220
property. 221
11. If a physical inspection is required, pursuant to 222
subsection 10 of this section, the assessor shall notify the 223
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property owner of that fact in writing and shall provide the 224
owner clear written notice of the owner's rights relating to 225
the physical inspection. If a physical inspection is 226
required, the property owner may request that an interior 227
inspection be performed during the physical inspection. The 228
owner shall have no less than thirty days to notify the 229
assessor of a request for an interior physical inspection. 230
12. A physical inspection, as required by subsection 231
10 of this section, shall include, but not be limited to, an 232
on-site personal observation and review of all exterior 233
portions of the land and any buildings and improvements to 234
which the inspector has or may reasonably and lawfully gain 235
external access, and shall include an observation and review 236
of the interior of any buildings or improvements on the 237
property upon the timely request of the owner pursuant to 238
subsection 11 of this section. Mere observation of the 239
property via a drive-by inspection or the like shall not be 240
considered sufficient to constitute a physical inspection as 241
required by this section. 242
13. A county or city collector may accept credit cards 243
as proper form of payment of outstanding property tax or 244
license due. No county or city collector may charge 245
surcharge for payment by credit card which exceeds the fee 246
or surcharge charged by the credit card bank, processor, or 247
issuer for its service. A county or city collector may 248
accept payment by electronic transfers of funds in payment 249
of any tax or license and charge the person making such 250
payment a fee equal to the fee charged the county by the 251
bank, processor, or issuer of such electronic payment. 252
14. [Any county or city not within a county in this 253
state may, by an affirmative vote of the governing body of 254
such county, opt out of the provisions of this section and 255
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sections 137.073, 138.060, and 138.100 as enacted by house 256
bill no. 1150 of the ninety-first general assembly, second 257
regular session and section 137.073 as modified by house 258
committee substitute for senate substitute for senate 259
committee substitute for senate bill no. 960, ninety-second 260
general assembly, second regular session, for the next year 261
of the general reassessment, prior to January first of any 262
year. No county or city not within a county shall exercise 263
this opt-out provision after implementing the provisions of 264
this section and sections 137.073, 138.060, and 138.100 as 265
enacted by house bill no. 1150 of the ninety-first general 266
assembly, second regular session and section 137.073 as 267
modified by house committee substitute for senate substitute 268
for senate committee substitute for senate bill no. 960, 269
ninety-second general assembly, second regular session, in a 270
year of general reassessment. For the purposes of applying 271
the provisions of this subsection, a political subdivision 272
contained within two or more counties where at least one of 273
such counties has opted out and at least one of such 274
counties has not opted out shall calculate a single tax rate 275
as in effect prior to the enactment of house bill no. 1150 276
of the ninety-first general assembly, second regular 277
session. A governing body of a city not within a county or 278
a county that has opted out under the provisions of this 279
subsection may choose to implement the provisions of this 280
section and sections 137.073, 138.060, and 138.100 as 281
enacted by house bill no. 1150 of the ninety-first general 282
assembly, second regular session, and section 137.073 as 283
modified by house committee substitute for senate substitute 284
for senate committee substitute for senate bill no. 960, 285
ninety-second general assembly, second regular session, for 286
the next year of general reassessment, by an affirmative 287
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vote of the governing body prior to December thirty-first of 288
any year. 289
15. The governing body of any city of the third 290
classification with more than twenty-six thousand three 291
hundred but fewer than twenty-six thousand seven hundred 292
inhabitants located in any county that has exercised its 293
authority to opt out under subsection 14 of this section may 294
levy separate and differing tax rates for real and personal 295
property only if such city bills and collects its own 296
property taxes or satisfies the entire cost of the billing 297
and collection of such separate and differing tax rates. 298
Such separate and differing rates shall not exceed such 299
city's tax rate ceiling. 300
16.] Any portion of real property that is available as 301
reserve for strip, surface, or coal mining for minerals for 302
purposes of excavation for future use or sale to others that 303
has not been bonded and permitted under chapter 444 shall be 304
assessed based upon how the real property is currently being 305
used. Any information provided to a county assessor, state 306
tax commission, state agency, or political subdivision 307
responsible for the administration of tax policies shall, in 308
the performance of its duties, make available all books, 309
records, and information requested, except such books, 310
records, and information as are by law declared confidential 311
in nature, including individually identifiable information 312
regarding a specific taxpayer or taxpayer's mine property. 313
For purposes of this subsection, "mine property" shall mean 314
all real property that is in use or readily available as a 315
reserve for strip, surface, or coal mining for minerals for 316
purposes of excavation for current or future use or sale to 317
others that has been bonded and permitted under chapter 444. 318
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