SECONDREGULARSESSION
[PERFECTED]
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.1906
102NDGENERALASSEMBLY
3205H.02P DANARADEMANMILLER,ChiefClerk
ANACT
Torepealsection137.115,RSMo,andtoenactinlieuthereofonenewsectionrelatingtoreal
propertyvaluationassessments.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Section137.115,RSMo,isrepealedandonenewsectionenactedinlieu
2thereof,tobeknownassection137.115,toreadasfollows:
137.115.1.Allotherlawstothecontrarynotwithstanding,theassessororthe
2assessor'sdeputiesinallcountiesofthisstateincludingtheCityofSt.Louisshallannually
3makealistofallrealandtangiblepersonalpropertytaxableintheassessor'scity,county,
4townordistrict.Exceptasotherwiseprovidedinsubsection3ofthissectionandsection
5137.078,theassessorshallannuallyassessallpersonalpropertyatthirty-threeandone-third
6percentofitstruevalueinmoneyasofJanuaryfirstofeachcalendaryear.Theassessorshall
7annuallyassessallrealproperty,includinganynewconstructionandimprovementstoreal
8property,andpossessoryinterestsinrealpropertyatthepercentofitstruevalueinmoneyset
9insubsection5ofthissection.Thetruevalueinmoneyofanypossessoryinterestinreal
10propertyinsubclass(3),wheresuchrealpropertyisonorlieswithintheultimateairport
11boundaryasshownbyafederalairportlayoutplan,asdefinedby14CFR151.5,ofa
12commercialairporthavingaFARPart139certificationandownedbyapoliticalsubdivision,
13shallbetheotherwiseapplicabletruevalueinmoneyofanysuchpossessoryinterestinreal
14property,lessthetotaldollaramountofcostspaidbyaparty,otherthanthepolitical
15subdivision,towardsanynewconstructionorimprovementsonsuchrealpropertycompleted
16afterJanuary1,2008,andwhichareincludedintheabove-mentionedpossessoryinterest,
17regardlessoftheyearinwhichsuchcostswereincurredorwhethersuchcostswere
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18consideredinanyprioryear.Theassessorshallannuallyassessallrealpropertyinthe
19followingmanner:newassessedvaluesshallbedeterminedasofJanuaryfirstofeachodd-
20numberedyearandshallbeenteredintheassessor'sbooks;thosesameassessedvaluesshall
21applyinthefollowingeven-numberedyear,exceptfornewconstructionandproperty
22improvementswhichshallbevaluedasthoughtheyhadbeencompletedasofJanuaryfirstof
23theprecedingodd-numberedyear.Theassessormaycallattheoffice,placeofdoing
24business,orresidenceofeachpersonrequiredbythischaptertolistproperty,andrequirethe
25persontomakeacorrectstatementofalltaxabletangiblepersonalpropertyownedbythe
26personorunderhisorhercare,chargeormanagement,taxableinthecounty.Onorbefore
27Januaryfirstofeacheven-numberedyear,theassessorshallprepareandsubmitatwo-year
28assessmentmaintenanceplantothecountygoverningbodyandthestatetaxcommissionfor
29theirrespectiveapprovalormodification.Thecountygoverningbodyshallapproveand
30forwardsuchplanoritsalternativetotheplantothestatetaxcommissionbyFebruaryfirst.
31Ifthecountygoverningbodyfailstoforwardtheplanoritsalternativetotheplantothestate
32taxcommissionbyFebruaryfirst,theassessor'splanshallbeconsideredapprovedbythe
33countygoverningbody.Ifthestatetaxcommissionfailstoapproveaplanandifthestatetax
34commissionandtheassessorandthegoverningbodyofthecountyinvolvedareunableto
35resolvethedifferences,inordertoreceivestatecost-sharefundsoutlinedinsection137.750,
36thecountyortheassessorshallpetitiontheadministrativehearingcommission,byMayfirst,
37todecideallmattersindisputeregardingtheassessmentmaintenanceplan.Uponagreement
38oftheparties,themattermaybestayedwhilethepartiesproceedwithmediationor
39arbitrationupontermsagreedtobytheparties.Thefinaldecisionoftheadministrative
40hearingcommissionshallbesubjecttojudicialreviewinthecircuitcourtofthecounty
41involved.Intheeventavaluationofsubclass(1)realpropertywithinanycountywitha
42charterformofgovernment,orwithinacitynotwithinacounty,ismadebyacomputer,
43computer-assistedmethodoracomputerprogram,theburdenofproof,supportedbyclear,
44convincingandcogentevidencetosustainsuchvaluation,shallbeontheassessoratany
45hearingorappeal.Inanysuchcounty,unlesstheassessorprovesotherwise,thereshallbea
46presumptionthattheassessmentwasmadebyacomputer,computer-assistedmethodora
47computerprogram.Suchevidenceshallinclude,butshallnotbelimitedto,thefollowing:
48 (1)Thefindingsoftheassessorbasedonanappraisalofthepropertybygenerally
49acceptedappraisaltechniques;and
50 (2)Thepurchasepricesfromsalesofatleastthreecomparablepropertiesandthe
51addressorlocationthereof.Asusedinthissubdivision,theword"comparable"meansthat:
52 (a)Suchsalewasclosedatadaterelevanttothepropertyvaluation;and
53 (b)Suchpropertiesarenotmorethanonemilefromthesiteofthedisputedproperty,
54exceptwherenosimilarpropertiesexistwithinonemileofthedisputedproperty,thenearest
HCSHB1906 2 55comparablepropertyshallbeused.Suchpropertyshallbewithinfivehundredsquarefeetin
56sizeofthedisputedproperty,andresemblethedisputedpropertyinage,floorplan,numberof
57rooms,andotherrelevantcharacteristics.
58 2.AssessorsineachcountyofthisstateandtheCityofSt.Louismaysendpersonal
59propertyassessmentformsthroughthemail.
60 3.Thefollowingitemsofpersonalpropertyshalleachconstituteseparatesubclasses
61oftangiblepersonalpropertyandshallbeassessedandvaluedforthepurposesoftaxationat
62thefollowingpercentagesoftheirtruevalueinmoney:
63 (1)Grainandotheragriculturalcropsinanunmanufacturedcondition,one-halfof
64onepercent;
65 (2)Livestock,twelvepercent;
66 (3)Farmmachinery,twelvepercent;
67 (4)Motorvehicleswhichareeligibleforregistrationasandareregisteredashistoric
68motorvehiclespursuanttosection301.131andaircraftwhichareatleasttwenty-fiveyears
69oldandwhichareusedsolelyfornoncommercialpurposesandareoperatedlessthantwo
70hundredhoursperyearoraircraftthatarehomebuiltfromakit,fivepercent;
71 (5)Poultry,twelvepercent;and
72 (6)Toolsandequipmentusedforpollutioncontrolandtoolsandequipmentusedin
73retoolingforthepurposeofintroducingnewproductlinesorusedformakingimprovements
74toexistingproductsbyanycompanywhichislocatedinastateenterprisezoneandwhichis
75identifiedbyanystandardindustrialclassificationnumbercitedinsubdivision(7)ofsection
76135.200,twenty-fivepercent.
77 4.Thepersonlistingthepropertyshallenteratrueandcorrectstatementofthe
78property,inaprintedblankpreparedforthatpurpose.Thestatement,afterbeingfilledout,
79shallbesignedandeitheraffirmedorsworntoasprovidedinsection137.155.Thelistshall
80thenbedeliveredtotheassessor.
81 5.(1)Allsubclassesofrealproperty,assuchsubclassesareestablishedinSection4
82(b)ofArticleXoftheMissouriConstitutionanddefinedinsection137.016,shallbeassessed
83atthefollowingpercentagesoftruevalue:
84 (a)Forrealpropertyinsubclass(1),nineteenpercent;
85 (b)Forrealpropertyinsubclass(2),twelvepercent;and
86 (c)Forrealpropertyinsubclass(3),thirty-twopercent.
87 (2)Ataxpayermayapplytothecountyassessor,or,ifnotlocatedwithinacounty,
88thentheassessorofsuchcity,forthereclassificationofsuchtaxpayer'srealpropertyiftheuse
89orpurposeofsuchrealpropertyischangedaftersuchpropertyisassessedunderthe
90provisionsofthischapter.Iftheassessordeterminesthatsuchpropertyshallbereclassified,
HCSHB1906 3 91heorsheshalldeterminetheassessmentunderthissubsectionbasedonthepercentageofthe
92taxyearthatsuchpropertywasclassifiedineachsubclassification.
93 6.Manufacturedhomes,asdefinedinsection700.010,whichareactuallyusedas
94dwellingunitsshallbeassessedatthesamepercentageoftruevalueasresidentialreal
95propertyforthepurposeoftaxation.Thepercentageofassessmentoftruevalueforsuch
96manufacturedhomesshallbethesameasforresidentialrealproperty.Ifthecountycollector
97cannotidentifyorfindthemanufacturedhomewhenattemptingtoattachthemanufactured
98homeforpaymentoftaxesowedbythemanufacturedhomeowner,thecountycollectormay
99requestthecountycommissiontohavethemanufacturedhomeremovedfromthetaxbooks,
100andsuchrequestshallbegrantedwithinthirtydaysaftertherequestismade;however,the
101removalfromthetaxbooksdoesnotremovethetaxlienonthemanufacturedhomeifitis
102lateridentifiedorfound.Forpurposesofthissection,amanufacturedhomelocatedina
103manufacturedhomerentalpark,rentalcommunityoronrealestatenotownedbythe
104manufacturedhomeownershallbeconsideredpersonalproperty.Forpurposesofthis
105section,amanufacturedhomelocatedonrealestateownedbythemanufacturedhomeowner
106maybeconsideredrealproperty.
107 7.Eachmanufacturedhomeassessedshallbeconsideredaparcelforthepurposeof
108reimbursementpursuanttosection137.750,unlessthemanufacturedhomeisdeemedtobe
109realestateasdefinedinsubsection7ofsection442.015andassessedasarealtyimprovement
110totheexistingrealestateparcel.
111 8.Anyamountoftaxdueandowingbasedontheassessmentofamanufactured
112homeshallbeincludedonthepersonalpropertytaxstatementofthemanufacturedhome
113ownerunlessthemanufacturedhomeisdeemedtoberealestateasdefinedinsubsection7of
114section442.015,inwhichcasetheamountoftaxdueandowingontheassessmentofthe
115manufacturedhomeasarealtyimprovementtotheexistingrealestateparcelshallbe
116includedontherealpropertytaxstatementoftherealestateowner.
117 9.Theassessorofeachcountyandeachcitynotwithinacountyshallusethetrade-in
118valuepublishedintheOctoberissueoftheNationalAutomobileDealers'AssociationOfficial
119UsedCarGuide,oritssuccessorpublication,astherecommendedguideofinformationfor
120determiningthetruevalueofmotorvehiclesdescribedinsuchpublication.Theassessorshall
121notuseavaluethatisgreaterthantheaveragetrade-invalueindeterminingthetruevalueof
122themotorvehiclewithoutperformingaphysicalinspectionofthemotorvehicle.Forvehicles
123twoyearsoldornewerfromavehicle'smodelyear,theassessormayuseavalueotherthan
124averagewithoutperformingaphysicalinspectionofthemotorvehicle.Intheabsenceofa
125listingforaparticularmotorvehicleinsuchpublication,theassessorshallusesuch
126informationorpublicationswhichintheassessor'sjudgmentwillfairlyestimatethetrue
127valueinmoneyofthemotorvehicle.
HCSHB1906 4 128 10.Beforetheassessormayincreasetheassessedvaluationofanyparcelofsubclass
129(1)realpropertybymorethanfifteenpercentsincethelastassessment,excludingincreases
130duetonewconstructionorimprovements,theassessorshallconductaphysicalinspectionof
131suchproperty.
132 11.Ifaphysicalinspectionisrequired,pursuanttosubsection10ofthissection,the
133assessorshallnotifythepropertyownerofthatfactinwritingandshallprovidetheowner
134clearwrittennoticeoftheowner'srightsrelatingtothephysicalinspection.Ifaphysical
135inspectionisrequired,thepropertyownermayrequestthataninteriorinspectionbe
136performedduringthephysicalinspection.Theownershallhavenolessthanthirtydaysto
137notifytheassessorofarequestforaninteriorphysicalinspection.
138 12.Aphysicalinspection,asrequiredbysubsection10ofthissection,shallinclude,
139butnotbelimitedto,anon-sitepersonalobservationandreviewofallexteriorportionsofthe
140landandanybuildingsandimprovementstowhichtheinspectorhasormayreasonablyand
141lawfullygainexternalaccess,andshallincludeanobservationandreviewoftheinteriorof
142anybuildingsorimprovementsonthepropertyuponthetimelyrequestoftheownerpursuant
143tosubsection11ofthissection.Mereobservationofthepropertyviaadrive-byinspectionor
144thelikeshallnotbeconsideredsufficienttoconstituteaphysicalinspectionasrequiredby
145thissection.
146 13.Acountyorcitycollectormayacceptcreditcardsasproperformofpaymentof
147outstandingpropertytaxorlicensedue.Nocountyorcitycollectormaychargesurchargefor
148paymentbycreditcardwhichexceedsthefeeorsurchargechargedbythecreditcardbank,
149processor,orissuerforitsservice.Acountyorcitycollectormayacceptpaymentby
150electronictransfersoffundsinpaymentofanytaxorlicenseandchargethepersonmaking
151suchpaymentafeeequaltothefeechargedthecountybythebank,processor,orissuerof
152suchelectronicpayment.
153 14.Anycountyorcitynotwithinacountyinthisstatemay,byanaffirmativevoteof
154thegoverningbodyofsuchcounty,optoutoftheprovisionsofthissectionandsections
155137.073,138.060,and138.100asenactedbyhousebillno.1150oftheninety-firstgeneral
156assembly,secondregularsessionandsection137.073asmodifiedbyhousecommittee
157substituteforsenatesubstituteforsenatecommitteesubstituteforsenatebillno.960,ninety-
158secondgeneralassembly,secondregularsession,forthenextyearofthegeneral
159reassessment,priortoJanuaryfirstofanyyear.Nocountyorcitynotwithinacounty
160shallexercisethisopt-outprovisionafterimplementingtheprovisionsofthissectionand
161sections137.073,138.060,and138.100asenactedbyhousebillno.1150oftheninety-first
162generalassembly,secondregularsessionandsection137.073asmodifiedbyhouse
163committeesubstituteforsenatesubstituteforsenatecommitteesubstituteforsenatebillno.
164960,ninety-secondgeneralassembly,secondregularsession,inayearofgeneral
HCSHB1906 5 165reassessment.Forthepurposesofapplyingtheprovisionsofthissubsection,apolitical
166subdivisioncontainedwithintwoormorecountieswhereatleastoneofsuchcountieshas
167optedoutandatleastoneofsuchcountieshasnotoptedoutshallcalculateasingletaxrateas
168ineffectpriortotheenactmentofhousebillno.1150oftheninety-firstgeneralassembly,
169secondregularsession.Agoverningbodyofacitynotwithinacountyoracountythathas
170optedoutundertheprovisionsofthissubsectionmaychoosetoimplementtheprovisionsof
171thissectionandsections137.073,138.060,and138.100asenactedbyhousebillno.1150of
172theninety-firstgeneralassembly,secondregularsession,andsection137.073asmodifiedby
173housecommitteesubstituteforsenatesubstituteforsenatecommitteesubstituteforsenatebill
174no.960,ninety-secondgeneralassembly,secondregularsession,forthenextyearofgeneral
175reassessment,byanaffirmativevoteofthegoverningbodypriortoDecemberthirty-firstof
176anyyear.
177 15.Thegoverningbodyofanycityofthethirdclassificationwithmorethantwenty-
178sixthousandthreehundredbutfewerthantwenty-sixthousandsevenhundredinhabitants
179locatedinanycountythathasexerciseditsauthoritytooptoutundersubsection14ofthis
180sectionmaylevyseparateanddifferingtaxratesforrealandpersonalpropertyonlyifsuch
181citybillsandcollectsitsownpropertytaxesorsatisfiestheentirecostofthebillingand
182collectionofsuchseparateanddifferingtaxrates.Suchseparateanddifferingratesshallnot
183exceedsuchcity'staxrateceiling.
184 16.Anyportionofrealpropertythatisavailableasreserveforstrip,surface,orcoal
185miningformineralsforpurposesofexcavationforfutureuseorsaletoothersthathasnot
186beenbondedandpermittedunderchapter444shallbeassessedbaseduponhowthereal
187propertyiscurrentlybeingused.Anyinformationprovidedtoacountyassessor,statetax
188commission,stateagency,orpoliticalsubdivisionresponsiblefortheadministrationoftax
189policiesshall,intheperformanceofitsduties,makeavailableallbooks,records,and
190informationrequested,exceptsuchbooks,records,andinformationasarebylawdeclared
191confidentialinnature,includingindividuallyidentifiableinformationregardingaspecific
192taxpayerortaxpayer'smineproperty.Forpurposesofthissubsection,"mineproperty"shall
193meanallrealpropertythatisinuseorreadilyavailableasareserveforstrip,surface,orcoal
194miningformineralsforpurposesofexcavationforcurrentorfutureuseorsaletoothersthat
195hasbeenbondedandpermittedunderchapter444.
196 17.(1)Exceptasprovidedundersections137.017and137.021,and
197notwithstandinganyotherprovisionofthissectionoranyotherprovisionoflawto
198thecontrary,beginningJanuary1,2025,thetruevalueinmoneyofallresidentialreal
199propertymaintainedandusedbytheownerasaprimaryresidenceforassessment
200purposesshallbethesamevaluedeterminedatthemostrecentpreviousassessmentof
201thepropertyasdeterminedonorbeforeDecember31,2024,subjecttothefollowing:
HCSHB1906 6 202 (a)Forallresidentialrealpropertymaintainedandusedbytheownerasa
203primaryresidencethatisbought,transferred,sold,assigned,orotherwiseconveyedon
204orafterJanuary1,2025,thetruevalueinmoneyofsuchpropertyforassessment
205purposesshallnotexceedthemostrecentpurchasepriceofsuchrealproperty.Such
206truevalueinmoneyshallbethetruevalueinmoneyforallsubsequentassessmentsuntil
207thenextsaleofsuchproperty,ortheconditionsunderparagraph(b)ofthissubdivision
208aremet,subjecttotheprovisionsofsection137.082andtheprovisionsofsubdivisions
209(3)and(4)ofthissubsection;or
210 (b)Forallassessmentsofresidentialrealpropertymaintainedandusedbythe
211ownerasaprimaryresidenceonorafterJanuary1,2025,theassessedvaluationofsuch
212propertymaybeincreasedfromtheassessedvaluationofsuchpropertydeterminedat
213itsmostrecentpreviousassessmentortheassessedvalueatthemostrecenttimeofsale
214underparagraph(a)ofthissubdivisionbutonlytotheextentthatsuchanincrease
215reflectsthevalueaddedtothepropertyasaresultofnewconstructionorimprovements
216madetothepropertywheretheaddedvalueequalsafiftypercentincreaseorgreaterin
217theassessedvaluationoftheproperty.Theassessorshallestablishanewassessed
218valuation,whichshallbethetruevalueinmoneyforallsubsequentassessmentsuntil
219theconditionsunderthisparagrapharemetagainorthenextsaleofsuchproperty
220underparagraph(a)ofthissubdivision,subjecttotheprovisionsofsection137.082and
221theprovisionsofsubdivisions(3)and(4)ofthissubsection.
222 (2)Ifatransactionunderthissubsectionresultsinasalethatisbelowmarket
223value,theassessorshallprovideevidencetotheboardofequalizationorother
224equivalententitythatsuchsalepriceshouldnotbeusedtodeterminethenewtruevalue
225inmoneyforassessmentpurposes.
226 (3)Theownershallnotifytheassessorofsuchnewconstructionor
227improvementssothatareassessmentcanbemade.
228 (4)Participationintheassessedvaluationprovisionsunderthissubsectionis
229optional.Anownerelectingtoparticipateintheassessedvaluationprovisionsunder
230thissubsectionmayoptinbynotifyingtheassessor'sofficeofsuchelection.Ifsuch
231electionisnotmade,theresidentialrealpropertymaintainedandusedbytheownerasa
232primaryresidenceshallbeassessedundertheassessmentprocessinexistenceonor
233beforeDecember31,2024.
234 (5)Theprovisionsofthissubsectionshallnotaffecttheabilityofanycounty
235assessortocarryoutanyotherdutiesunderthischapterorlocalorgenerallaw.
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HCSHB1906 7