HCSHJR78--PROPERTYTAXASSESSMENTS
SPONSOR: Coleman
COMMITTEEACTION:Voted"DoPasswithHCS"bytheSpecial
CommitteeonPropertyTaxReformbyavoteof19to2.
ThefollowingisasummaryoftheHouseCommitteeSubstitutefor
HJR78.
Uponvoterapproval,beginningJanuary1,2025,thisproposed
Constitutional amendmentprovidesthatthetruevalueofall
residentialrealpropertywillbedeemedtobethesamevalue
determinedatthemostrecentpreviousassessmentoftheproperty,
orifthepropertyhasbeensoldsinceitsmostrecentassessment,
thetruevalueofsuchpropertywillbedeemedtobethetotalfair
marketvalueofthecompensationreceivedbythesellerforthe
saleofsuchproperty.
ThisConstitutional amendmentwillapplytoallresidentialreal
propertythat:
(1)Hasbeenmaintainedbythehomeownerashisorherprimary
residence;or
(2)Hasbeenowned,used,oroccupiedbyanownerwhois65years
ofageorolder,isliableforthepaymentofrealpropertytaxes
ontheresidence,andisanownerofrecordorhasalegalor
equitableinterestinthepropertyasevidencedbyawritten
instrument.
Whenanewassessmentorreassessmentofresidentialrealproperty
isconducted,theassessedvaluationofsuchpropertymaybe
increasedfromtheassessedvaluationofsuchpropertydetermined
atitsmostrecentpreviousassessmentbutonlytotheextentthat
suchanincrease:
(1)IncorporatesthechangeintheConsumerPriceIndexsincethe
mostrecentpreviousassessmentoruptoa2%annualincreasein
theassessedvaluationoftheproperty,whicheverisless;or
(2)Reflectsthevalueaddedtothepropertyasaresultofnew
constructionorimprovementsmadetothepropertyasfollows:
(a)Suchvalueshallbetheactualcostofthematerialspurchased
forimprovements;
(b)Documentationofactualcostsshallbesenttotheassessor
afterthecompletionofthenewconstructionorimprovements; (c)Suchdocumentationofcostsorotherdocumentsshallnotbe
madeavailableandshallbeusedonlybytheassessorforthesole
purposeofestablishingthetruevalueoftheproperty.
Intheeventthatresidentialrealpropertyissold,thetitle
companyofthepurchaserofanysuchpropertymustsendtothe
assessor,assoonasreasonablypracticableafterthepurchase,a
notarizedcopyofthesalescontractoftheproperty,andsuch
documentshallbeconsideredaclosedrecordunderStatelaw.
Taxpayerswhoreachtheageof65duringataxyearshallbeexempt
fromanyincreasesintheassessedvaluationoftheirreal
property,providedthatsuchpropertyisusedandoccupiedastheir
primaryresidence. Thevaluationofrealpropertyfortheseage-
qualifiedtaxpayersshallbebasedonthemostrecentassessed
valuationoftheirprimaryresidenceforthetaxyearimmediately
precedingtheyearinwhichtheage-qualifiedtaxpayerbecame
eligiblefortheexemption.
Ifanage-qualifiedtaxpayeracquiresresidentialrealproperty
afterreachingtheageof65orolder,theassessedvaluationof
thenewlyacquiredrealpropertyshallbebasedonthemostrecent
assessedvaluationoftherealpropertybeforethetaxyearthat
theage-qualifiedtaxpayerbecameeligibleagainfortheexemption,
solongasithasbeenestablishedthatthenewlyacquiredproperty
isbeingmaintainedbythehomeownerashisorherprimary
residence.
Ifanage-qualifiedtaxpayerismarried,onlyonespouseneed
qualifyasanage-qualifiedtaxpayertobeeligibleforthe
exemption. Iftheage-qualifiedtaxpayerdies,thesurviving
spouseshallcontinuetoreceivetheexemption,providedthatthe
survivingspouseisliablefortherealpropertytaxesonthe
residentialhome,isanownerofrecordoftheproperty,orhasa
legalorequitableinterestintheproperty,andthesurviving
spouseactuallyusesandoccupiestheresidentialrealestateas
hisorherprimaryresidence.
Uponrequest,anage-qualifiedtaxpayershallpresenttothecounty
assessoravalid,government-issueddocumentthatidentifiesthe
taxpayer'sdateofbirth.
ThisbillissimilartoHJR33&45(2023)andHJR80(2022).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill. PROPONENTS: Supporterssaythatmanyseniorsarelosingtheir
homesduetorisingrealestatetaxrates.Currently,countiesare
usingataxstructurethatendsuptaxinganunrealizedgain.This
kindoftaxationdoesnothaveproperrepresentation, inthatthe
homeownerisnotgivenachancetovoteonthetaxingofthe
unrealizedgains.Supportersfurthersaythatwithmuchhigher
assessmentseachyear,thereisacorrespondingincreaseinthe
numberofappealstothelocalBoardofEqualization. Withsomany
appeals,homeownersarenowwaitingformonthsbeforetheymight
getahearing. Thisbillwilleithereliminateorlessensuch
problems.
TestifyinginpersonforthebillwereRepresentative Coleman;and
SeanSmith.
OPPONENTS: Thosewhoopposethebillsaythatwiththeproposed
increaseofgovernmentalintrusionintoahomeowner'sproperty
rights,thisbillcouldleadtoadatabaseofinformationabout
privatecitizensandtheirpropertyownership. Opponentsfurther
saythatfreezinghomevaluescouldleadtoasituationinwhicha
countyassessorisaskedtoassignaninaccuratevaluetoapiece
ofrealestate.
TestifyinginpersonagainstthebillwereMissouriRealtors;and
Armorvine.
OTHERS:Otherstestifyingonthebillsaythatveryoften,two
similarlysituatedpropertiescanhaveverydifferentassessments,
basedonavarietyoffactors. Further,itisveryoftenthecase
thatatbuildingsites,thebuilderisnotusuallyforthcoming
aboutthecostsormaterialsatthesite,whichleavesthecounty
assessorinapositionofhavingtoguessatthevalueofthe
property.
TestifyinginpersononthebillwasKennethMohr.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.