Download Frequently Asked Questions

Frequently Asked Questions
What types of property are there?
Real Property — this includes land, improvements to the land, and all rights inherent in
ownership.
Personal Property — this is any property that is not real property, and is not permanently
affixed to or part of real estate. Personal property includes cars, boats, and farm
equipment.
What are assessment and reassessment?
Assessment is the process of placing value on a property for the purpose of property
taxation. Reassessment is an update of all real property assessments in the county,
conducted by the county assessor to equalize values among taxpayers and to adjust values
to current market conditions.
How often is property reassessed?
The assessor places reassessed values of real estate on the tax rolls in odd-numbered
years. Personal property is assessed every year.
What happens in the even year for real estate?
For most real estate owners, nothing changes. However, if new construction and
improvements (or demolition) have taken place, the property’s market value is adjusted
to reflect the added value of the new construction (or the decreased value of demolition).
Who is Responsible for Reassessing Property?
The county assessor is primarily responsible for assessing property within the county.
However, the assessor’s work is subject to review by the county Board of Equalization
and the Missouri State Tax Commission. The State Tax Commission is the state agency
charged with general supervision of assessors and with enforcing property tax laws.
What is Market Value?
Market value, true value in money, and appraised value all have the same meaning under
Missouri law. A simple definition of market value is the price the property would bring
when offered for sale by a person who is willing but not obligated to sell it, and is bought
by a person who is willing to purchase it but who is not forced to do so.
How is My Assessment Level Established?
Once market value has been determined, the assessor calculates a percentage of that value
to arrive at the assessed value. The percentage is based on the classification, and
determined by the type of property or how it is used. The percentages are:
Real Estate:
Residential 19%
Agricultural 12%
Commercial 32%
Personal:
Manufactured homes 19%
Farm Machinery 12%
Vehicles & All Other 33.3%
As an example, a residence with a market value of $100,000 would be assessed at 19%,
which would place its assessed value at $19,000. An automobile with a market value of
$15,000 would be assessed at 33 1/3%, or $5,000.
The tax rate (which varies depending on where you live) is then applied to the assessed
value to get the total tax amount due.
How are the real estate classifications determined?
Missouri statutes define the three subclasses of real estate:
Subclass 1: Residential property is all real property improved by a structure which is
used or intended to be used for residential living by human occupants, vacant land in
connection with an airport, land used as a golf course, and manufactured home parks, but
residential property shall not include facilities used primarily for transient housing.
Subclass 2: Agricultural and horticultural property is that which is actively used for those
purposes. The value of this land is established by its productivity, based on soil
productivity guidelines set by the State Tax Commission. It is not based on market value;
however, when the highest and best use of land is considered to be agricultural, and it is
not actively farmed, it is assessed according to market value and not by productivity
guidelines.
Subclass 3: Utility, industrial, commercial, and railroad property, and any other real
estate that does not fit either of the other two classes. Includes mines, stores, factories,
and property of non-profit corporations.
No changes have been made to my property, so why did my taxes change?
It could be that the tax rate, and not the assessed valuation changed. The assessor has no
authority over the tax rates. The taxing authorities (schools, cities, fire districts, etc.)
establish their own tax rates.
No improvements have been made to my property, so why should the assessed value
increase?
Market value changes over time even if no improvements are made to the property. For
example, many people sell their homes for more money than they originally paid years
earlier. The statutes require that property be periodically reassessed to maintain realistic
market values and treat all taxpayers fairly.
How do foreclosure properties affect my market value?
Foreclosure sales of real property are typically not considered a normal arm’s length
transaction. The seller is often under duress, and obligated to sell the property.
Foreclosure properties affect market value by forcing competing properties to adjust
asking prices. Current sale data shows that real property not under duress may have a
longer marketing period, but sells for a much higher value than a distressed foreclosure
sale.
I do not agree with my property assessment; what can I do?
You can appeal your assessment. There are three steps to do so:
1. Informal Appeal: Contact the assessor’s office and talk to the assessor or one of
the staff. During an informal meeting, you can learn how your assessment was
made, what factors were considered, and what types of records pertain to your
property. Most disagreements are resolved in this step. If you have a recent
appraisal or other evidence that supports your case, please provide us a copy. If
there are interior problems that we may not know about, please inform us. If you
wish, we can make an appointment with you to meet a member of our field team
to view the property.
2. Board of Equalization: If you not satisfied after the informal meeting, you should
contact your county clerk for information regarding forms and deadlines for
appealing to the county Board of Equalization. A hearing will be scheduled where
the board will hear evidence from the assessor and any evidence you might have
regarding the value of the property, which is the subject of the appeal.
3. State Tax Commission: If you are still not satisfied with the assessment on your
property, you have a right to appeal to the State Tax Commission by September
30 or 30 days after the final action of the Board of Equalization, whichever date is
later.
Do I have to pay taxes on a portable shed?
You do have to pay taxes on a shed, even though it is portable or on skids. The
assessor’s office typically assesses the shed with the real estate. If someone other than
the landowner owns the shed, it can be assessed as personal property instead.
I bought or sold real estate this year. Who gets the tax bill?
It depends on when you bought or sold the property. The buyer will typically receive the
tax bill at the end of the year, unless the transaction was made October through December
after the assessor closes the books and tax bills are printed. Taxes will be prorated at
your closing, and the title company will typically calculate how much each party owes.
The collector cannot split tax bills.
I just purchased a vehicle; will I owe property taxes on it this year?
Personal property taxes are due on property owned as of January 1st each year. If you did
not own a vehicle on January 1, then no personal property taxes on that vehicle will be
due. If you purchase a vehicle after January 1, you are not responsible for the taxes in the
year of purchase.
I sold my vehicle; why should I have to pay taxes on it?
If you sold your vehicle or any other personal property after January 1 of the year, you
are still liable for the taxes that year. You pay taxes on whatever you owned January 1.
Is there property tax relief in Missouri?
Yes. There is a Missouri Property Tax Credit Program. The Missouri Property Tax
Credit Claim gives a refund to certain senior citizens and 100 percent disabled
individuals for a portion of the real estate taxes or rent they have paid for the year. For
more information or to see if you are eligible, please call the Missouri Department of
Revenue at (800) 877-6881 or visit the Missouri Department of Revenue website at:
http://dor.mo.gov/personal/ptc/
The Homestead Preservation Act was another form of property tax relief, but it expired
August 28th 2010. For more information, please visit:
http://dor.mo.gov/personal/homestead/
When should I contact the assessor’s office?
You should contact the assessor’s office in the event that you have moved in, out, or
within the county. If you believe there is an error in your assessment, please contact us
immediately. You should contact the office if your property has been damaged by fire or
a natural disaster, or has been demolished as this could lower your assessment. Please
call or come by the office if you have any other questions or concerns.
Any other questions? Please contact us:
Karissa A. Logan
Pettis County Assessor
415 S Ohio Ste 218
Sedalia, MO 65301
660-826-5000 ext 920 Office
660-829-2492
Fax