Missouri Real Estate Assessment and Appeal Process
Property owners of multifamily housing need to be aware of how their property values are assessed when they are assessed, and how to appeal the assessment.
In the State of Missouri, property values are assessed by the local Assessor’s office and the real estate tax rate is set by the local taxing authority. When you appeal the assessed value of your property, you are only appealing the value and not the tax rate.
The Assessor is not always right! In fact, it is common for the Assessor to get it wrong. Assessing income producing real estate is complicated and most of the time, the Assessor is not privy to financial reports of the property and the underlying performance of the property as an income producing asset at the time of the assessment. Instead, the Assessor will use financial benchmarks and available real estate market data as tools for developing a value.
The Assessor is required by Missouri law to place the reassessed value of the real estate on the tax rolls as of January 1 of each odd numbered year. If the assessed value of a property has increased, Missouri law requires the owner to be notified by the Assessor.
What if you disagree with the assessed value? The first step is an informal conversation or hearing with one of the appraisers to answer questions the property owner may have. If the informal hearing does not yield desired results, then you have the option to file a formal appeal before the local Board of Equalization. Your appeal before the Board of Equalization MUST be filed no later than the second Tuesday in July. If necessary, the next step is in the appeal process would be appealing to the Missouri State Tax Commission.