2021 Missouri Real Estate Taxes – And Appeals

The COVID-19 pandemic has caused an extreme financial hardship on most, if not all, Missouri families. As such, many owners of real estate are investigating how best to reduce their outstanding financial obligations and save resources wherever possible.

Given this crisis, one obvious area to investigate is real estate tax liability. Missouri reassesses all real estate every odd-numbered year (e.g., 2019, 2021, etc.). In even-numbered years, local Missouri assessors normally allow values to remain unchanged from the prior odd-numbered year. 2021 is a reassessment year for all Missouri local assessors.

Real Estate Assessment

Real estate assessment is the process of local county assessors placing a fair market valuation and classification on all real estate. Missouri properties are divided into three classifications: commercial, residential, and agricultural. If the assessed valuation changes during the reassessment, the assessor sends out a Notice of Assessment to the taxpayer.

Appeal of Real Estate Valuation

Valuations are typically available in late spring to early summer. If you disagree with the county assessor’s valuation, you can appeal the property tax.  Appeals must be filed on or before the second Monday of July. In 2021, all appeals must be filed on or before Monday, July 12, 2021.

To file an appeal, obtain the proper real estate tax appeal forms (generally found on the local Board of Equalization (BOE) website). File the forms and submit evidence to support your opinion of the fair market value on your property to the local BOE.

Assessed Valuation

Once the fair market value of the property has been determined, the assessor must apply the appropriate percentage to the fair market value. In Missouri, commercial property is assessed at 32% of the fair market value as January 1 of the reassessment year. Residential property is assessed at 19% of the fair market value. Finally, agricultural property is assessed at 12% of the fair market value.

Real Estate Taxes 

The tax on real property is determined by the assessed valuation of the property multiplied by the actual tax rate set by the local government where the property is located.  Tax bills are generally mailed out annually in late fall with payment due on or before December 31. If real estate taxes are not paid when due, the taxes become a lien on the property with interest and penalties possibly added after January 1 of the following year.

Real Estate Tax Appeals: The Local BOE and Beyond Continue reading »

Can You Appeal Your Real Estate Taxes in 2020?

The COVID-19 pandemic has caused an extreme financial hardship on most, if not all, Missouri families. As such, many owners of real estate are investigating how best to reduce outstanding financial obligations and save resources wherever possible.

Given this crisis, one obvious area to investigate would be outstanding tax liability. The Internal Revenue Service has extended the filing deadline for federal income taxes from April 15, 2020 to July 15, 2020. However, what about real estate taxes, which are generally due on December 31 of each year? This is another area to investigate and quite possibly take timely and appropriate action.

Missouri reassesses all real estate every odd-numbered year (e.g. 2019, 2021, etc.).  In even- numbered years, such as 2020, local Missouri assessors normally allow their values to remain unchanged from the prior odd-numbered year (2019).

If you failed to file an appeal in 2019 on a timely basis, can you now appeal in 2020? The general answer is yes, you can appeal your real estate taxes in an even-numbered year (e.g., 2020). However, the assessor takes the position that the valuation for your property in 2020 will be based upon the fair market value of the property as of January 1, 2019.

The local assessor determines both the fair market value and the subclassification of all real property. Real property is assessed under a two-year cycle. The value placed on a property for an odd-numbered year is placed on the property for the next even-numbered year. However, the assessor has the right to increase the value in an even-numbered year due to recent construction. Continue reading »