EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 359
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR SCHROER.
1162S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.073 and 137.115, RSMo, and to enact in lieu thereof two new sections
relating to personal property valuations.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.073 and 137.115, RSMo, are 1
repealed and two new sections enacted in lieu thereof, to be 2
known as sections 137.073 and 137.115, to read as follows:3
137.073. 1. As used in this section, the following 1
terms mean: 2
(1) "General reassessment", changes in value, entered 3
in the assessor's books, of a substantial portion of the 4
parcels of real property within a county resulting wh olly or 5
partly from reappraisal of value or other actions of the 6
assessor or county equalization body or ordered by the state 7
tax commission or any court; 8
(2) "Tax rate", "rate", or "rate of levy", singular or 9
plural, includes the tax rate for ea ch purpose of taxation 10
of property a taxing authority is authorized to levy without 11
a vote and any tax rate authorized by election, including 12
bond interest and sinking fund; 13
(3) "Tax rate ceiling", a tax rate as revised by the 14
taxing authority to comply with the provisions of this 15
section or when a court has determined the tax rate; except 16
that, other provisions of law to the contrary 17
notwithstanding, a school district may levy the operating 18 SB 359 2
levy for school purposes required for the current ye ar 19
pursuant to subsection 2 of section 163.021, less all 20
adjustments required pursuant to Article X, Section 22 of 21
the Missouri Constitution, if such tax rate does not exceed 22
the highest tax rate in effect subsequent to the 1980 tax 23
year. This is the maximum tax rate that may be levied, 24
unless a higher tax rate ceiling is approved by voters of 25
the political subdivision as provided in this section; 26
(4) "Tax revenue", when referring to the previous 27
year, means the actual receipts from ad valore m levies on 28
all classes of property, including state -assessed property, 29
in the immediately preceding fiscal year of the political 30
subdivision, plus an allowance for taxes billed but not 31
collected in the fiscal year and plus an additional 32
allowance for the revenue which would have been collected 33
from property which was annexed by such political 34
subdivision but which was not previously used in determining 35
tax revenue pursuant to this section. The term "tax 36
revenue" shall not include any receipts fro m ad valorem 37
levies on any property of a railroad corporation or a public 38
utility, as these terms are defined in section 386.020, 39
which were assessed by the assessor of a county or city in 40
the previous year but are assessed by the state tax 41
commission in the current year. All school districts and 42
those counties levying sales taxes pursuant to chapter 67 43
shall include in the calculation of tax revenue an amount 44
equivalent to that by which they reduced property tax levies 45
as a result of sales tax pu rsuant to section 67.505 and 46
section 164.013 [or as excess home dock city or county fees 47
as provided in subsection 4 of section 313.820 ] in the 48
immediately preceding fiscal year but not including any 49
amount calculated to adjust for prior years. For purposes 50 SB 359 3
of political subdivisions which were authorized to levy a 51
tax in the prior year but which did not levy such tax or 52
levied a reduced rate, the term "tax revenue", as used in 53
relation to the revision of tax levies mandated by law, 54
shall mean the revenues equal to the amount that would have 55
been available if the voluntary rate reduction had not been 56
made. 57
2. Whenever changes in assessed valuation are entered 58
in the assessor's books for any personal property, in the 59
aggregate, or for any s ubclass of real property as such 60
subclasses are established in Section 4(b) of Article X of 61
the Missouri Constitution and defined in section 137.016, 62
the county clerk in all counties and the assessor of St. 63
Louis City shall notify each political subdiv ision wholly or 64
partially within the county or St. Louis City of the change 65
in valuation of each subclass of real property, 66
individually, and personal property, in the aggregate, 67
exclusive of new construction and improvements. All 68
political subdivisions shall immediately revise the 69
applicable rates of levy for each purpose for each subclass 70
of real property, individually, and personal property, in 71
the aggregate, for which taxes are levied to the extent 72
necessary to produce from all taxable propert y, exclusive of 73
new construction and improvements, substantially the same 74
amount of tax revenue as was produced in the previous year 75
for each subclass of real property, individually, and 76
personal property, in the aggregate, except that the rate 77
shall not exceed the greater of the most recent voter - 78
approved rate or the most recent voter -approved rate as 79
adjusted under subdivision (2) of subsection 5 of this 80
section. Any political subdivision that has received 81
approval from voters for a tax increase after August 27, 82 SB 359 4
2008, may levy a rate to collect substantially the same 83
amount of tax revenue as the amount of revenue that would 84
have been derived by applying the voter -approved increased 85
tax rate ceiling to the total assessed valuation of the 86
political subdivision as most recently certified by the city 87
or county clerk on or before the date of the election in 88
which such increase is approved, increased by the percentage 89
increase in the consumer price index, as provided by law, 90
except that the rate shall not exceed the greater of the 91
most recent voter-approved rate or the most recent voter - 92
approved rate as adjusted under subdivision (2) of 93
subsection 5 of this section. Such tax revenue shall not 94
include any receipts from ad valorem levies on a ny real 95
property which was assessed by the assessor of a county or 96
city in such previous year but is assessed by the assessor 97
of a county or city in the current year in a different 98
subclass of real property. Where the taxing authority is a 99
school district for the purposes of revising the applicable 100
rates of levy for each subclass of real property, the tax 101
revenues from state-assessed railroad and utility property 102
shall be apportioned and attributed to each subclass of real 103
property based on the pe rcentage of the total assessed 104
valuation of the county that each subclass of real property 105
represents in the current [taxable] tax year. As provided 106
in Section 22 of Article X of the constitution, a political 107
subdivision may also revise each levy to a llow for 108
inflationary assessment growth occurring within the 109
political subdivision. The inflationary growth factor for 110
any such subclass of real property or personal property 111
shall be limited to the actual assessment growth in such 112
subclass or class, exclusive of new construction and 113
improvements, and exclusive of the assessed value on any 114 SB 359 5
real property which was assessed by the assessor of a county 115
or city in the current year in a different subclass of real 116
property, but not to exceed the consume r price index or five 117
percent, whichever is lower. Should the tax revenue of a 118
political subdivision from the various tax rates determined 119
in this subsection be different than the tax revenue that 120
would have been determined from a single tax rate as 121
calculated pursuant to the method of calculation in this 122
subsection prior to January 1, 2003, then the political 123
subdivision shall revise the tax rates of those subclasses 124
of real property, individually, and/or personal property, in 125
the aggregate, in which there is a tax rate reduction, 126
pursuant to the provisions of this subsection. Such 127
revision shall yield an amount equal to such difference and 128
shall be apportioned among such subclasses of real property, 129
individually, and/or personal property, in the aggregate, 130
based on the relative assessed valuation of the class or 131
subclasses of property experiencing a tax rate reduction. 132
Such revision in the tax rates of each class or subclass 133
shall be made by computing the percentage of current year 134
adjusted assessed valuation of each class or subclass with a 135
tax rate reduction to the total current year adjusted 136
assessed valuation of the class or subclasses with a tax 137
rate reduction, multiplying the resulting percentages by the 138
revenue difference betw een the single rate calculation and 139
the calculations pursuant to this subsection and dividing by 140
the respective adjusted current year assessed valuation of 141
each class or subclass to determine the adjustment to the 142
rate to be levied upon each class or s ubclass of property. 143
The adjustment computed herein shall be multiplied by one 144
hundred, rounded to four decimals in the manner provided in 145
this subsection, and added to the initial rate computed for 146 SB 359 6
each class or subclass of property. For school districts 147
that levy separate tax rates on each subclass of real 148
property and personal property in the aggregate, if voters 149
approved a ballot before January 1, 2011, that presented 150
separate stated tax rates to be applied to the different 151
subclasses of real property and personal property in the 152
aggregate, or increases the separate rates that may be 153
levied on the different subclasses of real property and 154
personal property in the aggregate by different amounts, the 155
tax rate that shall be used for the singl e tax rate 156
calculation shall be a blended rate, calculated in the 157
manner provided under subdivision (1) of subsection 6 of 158
this section. Notwithstanding any provision of this 159
subsection to the contrary, no revision to the rate of levy 160
for personal property shall cause such levy to increase over 161
the levy for personal property from the prior year. 162
3. (1) Where the taxing authority is a school 163
district, it shall be required to revise the rates of levy 164
to the extent necessary to produce from all taxable 165
property, including state -assessed railroad and utility 166
property, which shall be separately estimated in addition to 167
other data required in complying with section 164.011, 168
substantially the amount of tax revenue permitted in this 169
section. In the year following tax rate reduction, the tax 170
rate ceiling may be adjusted to offset such district's 171
reduction in the apportionment of state school moneys due to 172
its reduced tax rate. However, in the event any school 173
district, in calculating a tax r ate ceiling pursuant to this 174
section, requiring the estimating of effects of state - 175
assessed railroad and utility valuation or loss of state 176
aid, discovers that the estimates used result in receipt of 177
excess revenues, which would have required a lower r ate if 178 SB 359 7
the actual information had been known, the school district 179
shall reduce the tax rate ceiling in the following year to 180
compensate for the excess receipts, and the recalculated 181
rate shall become the tax rate ceiling for purposes of this 182
section. 183
(2) For any political subdivision which experiences a 184
reduction in the amount of assessed valuation relating to a 185
prior year, due to decisions of the state tax commission or 186
a court pursuant to sections 138.430 to 138.433, or due to 187
clerical errors or corrections in the calculation or 188
recordation of any assessed valuation: 189
(a) Such political subdivision may revise the tax rate 190
ceiling for each purpose it levies taxes to compensate for 191
the reduction in assessed value occurring after the 192
political subdivision calculated the tax rate ceiling for 193
the particular subclass of real property or for personal 194
property, in the aggregate, in a prior year. Such revision 195
by the political subdivision shall be made at the time of 196
the next calculation of the tax rate for the particular 197
subclass of real property or for personal property, in the 198
aggregate, after the reduction in assessed valuation has 199
been determined and shall be calculated in a manner that 200
results in the revised tax rate ceiling bei ng the same as it 201
would have been had the corrected or finalized assessment 202
been available at the time of the prior calculation; 203
(b) In addition, for up to three years following the 204
determination of the reduction in assessed valuation as a 205
result of circumstances defined in this subdivision, such 206
political subdivision may levy a tax rate for each purpose 207
it levies taxes above the revised tax rate ceiling provided 208
in paragraph (a) of this subdivision to recoup any revenues 209
it was entitled to re ceive had the corrected or finalized 210 SB 359 8
assessment been available at the time of the prior 211
calculation. 212
4. (1) In order to implement the provisions of this 213
section and Section 22 of Article X of the Constitution of 214
Missouri, the term improvements s hall apply to both real and 215
personal property. In order to determine the value of new 216
construction and improvements, each county assessor shall 217
maintain a record of real property valuations in such a 218
manner as to identify each year the increase in val uation 219
for each political subdivision in the county as a result of 220
new construction and improvements. The value of new 221
construction and improvements shall include the additional 222
assessed value of all improvements or additions to real 223
property which were begun after and were not part of the 224
prior year's assessment, except that the additional assessed 225
value of all improvements or additions to real property 226
which had been totally or partially exempt from ad valorem 227
taxes pursuant to sections 99.800 t o 99.865, sections 228
135.200 to 135.255, and section 353.110 shall be included in 229
the value of new construction and improvements when the 230
property becomes totally or partially subject to assessment 231
and payment of all ad valorem taxes. Except for increases 232
in motor vehicle value under the provisions of subsection 9 233
of section 137.115, the aggregate increase in valuation of 234
personal property for the current year over that of the 235
previous year is the equivalent of the new construction and 236
improvements factor for personal property. Beginning 237
January 1, 2027, any increase in motor vehicle value from a 238
previous year's price guide under subsection 9 of section 239
137.115 shall not be counted as new construction. 240
Notwithstanding any opt -out implemented pursuant to 241
subsection 14 of section 137.115, the assessor shall certify 242 SB 359 9
the amount of new construction and improvements and the 243
amount of assessed value on any real property which was 244
assessed by the assessor of a county or city in such 245
previous year but is assessed by the assessor of a county or 246
city in the current year in a different subclass of real 247
property separately for each of the three subclasses of real 248
property for each political subdivision to the county clerk 249
in order that political subd ivisions shall have this 250
information for the purpose of calculating tax rates 251
pursuant to this section and Section 22, Article X, 252
Constitution of Missouri. In addition, the state tax 253
commission shall certify each year to each county clerk the 254
increase in the general price level as measured by the 255
Consumer Price Index for All Urban Consumers for the United 256
States, or its successor publications, as defined and 257
officially reported by the United States Department of 258
Labor, or its successor agency. The state tax commission 259
shall certify the increase in such index on the latest 260
twelve-month basis available on February first of each year 261
over the immediately preceding prior twelve -month period in 262
order that political subdivisions shall have this 263
information available in setting their tax rates according 264
to law and Section 22 of Article X of the Constitution of 265
Missouri. For purposes of implementing the provisions of 266
this section and Section 22 of Article X of the Missouri 267
Constitution, the term "property" means all taxable 268
property, including state -assessed property. 269
(2) Each political subdivision required to revise 270
rates of levy pursuant to this section or Section 22 of 271
Article X of the Constitution of Missouri shall calculate 272
each tax rate it is authorized to levy and, in establishing 273
each tax rate, shall consider each provision for tax rate 274 SB 359 10
revision provided in this section and Section 22 of Article 275
X of the Constitution of Missouri, separately and without 276
regard to annual tax rat e reductions provided in section 277
67.505 and section 164.013. Each political subdivision 278
shall set each tax rate it is authorized to levy using the 279
calculation that produces the lowest tax rate ceiling. It 280
is further the intent of the general assembly , pursuant to 281
the authority of Section 10(c) of Article X of the 282
Constitution of Missouri, that the provisions of such 283
section be applicable to tax rate revisions mandated 284
pursuant to Section 22 of Article X of the Constitution of 285
Missouri as to reest ablishing tax rates as revised in 286
subsequent years, enforcement provisions, and other 287
provisions not in conflict with Section 22 of Article X of 288
the Constitution of Missouri. Annual tax rate reductions 289
provided in section 67.505 and section 164.013 sh all be 290
applied to the tax rate as established pursuant to this 291
section and Section 22 of Article X of the Constitution of 292
Missouri, unless otherwise provided by law. 293
5. (1) In all political subdivisions, the tax rate 294
ceiling established pursuant to this section shall not be 295
increased unless approved by a vote of the people. Approval 296
of the higher tax rate shall be by at least a majority of 297
votes cast. When a proposed higher tax rate requires 298
approval by more than a simple majority pursuant to any 299
provision of law or the constitution, the tax rate increase 300
must receive approval by at least the majority required. 301
(2) When voters approve an increase in the tax rate, 302
the amount of the increase shall be added to the tax rate 303
ceiling as calculated pursuant to this section to the extent 304
the total rate does not exceed any maximum rate prescribed 305
by law. If a ballot question presents a stated tax rate for 306 SB 359 11
approval rather than describing the amount of increase in 307
the question, the stated tax rate approved shall be adjusted 308
as provided in this section and, so adjusted, shall be the 309
current tax rate ceiling. The increased tax rate ceiling as 310
approved shall be adjusted such that when applied to the 311
current total assessed valuation of th e political 312
subdivision, excluding new construction and improvements 313
since the date of the election approving such increase, the 314
revenue derived from the adjusted tax rate ceiling is equal 315
to the sum of: the amount of revenue which would have been 316
derived by applying the voter -approved increased tax rate 317
ceiling to total assessed valuation of the political 318
subdivision, as most recently certified by the city or 319
county clerk on or before the date of the election in which 320
such increase is approved, i ncreased by the percentage 321
increase in the consumer price index, as provided by law. 322
Such adjusted tax rate ceiling may be applied to the total 323
assessed valuation of the political subdivision at the 324
setting of the next tax rate. If a ballot question presents 325
a phased-in tax rate increase, upon voter approval, each tax 326
rate increase shall be adjusted in the manner prescribed in 327
this section to yield the sum of: the amount of revenue 328
that would be derived by applying such voter -approved 329
increased rate to the total assessed valuation, as most 330
recently certified by the city or county clerk on or before 331
the date of the election in which such increase was 332
approved, increased by the percentage increase in the 333
consumer price index, as provided by law , from the date of 334
the election to the time of such increase and, so adjusted, 335
shall be the current tax rate ceiling. 336
(3) The governing body of any political subdivision 337
may levy a tax rate lower than its tax rate ceiling and may, 338 SB 359 12
in a nonreassessment year, increase that lowered tax rate to 339
a level not exceeding the tax rate ceiling without voter 340
approval in the manner provided under subdivision (4) of 341
this subsection. Nothing in this section shall be construed 342
as prohibiting a political subd ivision from voluntarily 343
levying a tax rate lower than that which is required under 344
the provisions of this section or from seeking voter 345
approval of a reduction to such political subdivision's tax 346
rate ceiling. 347
(4) In a year of general reassessme nt, a governing 348
body whose tax rate is lower than its tax rate ceiling shall 349
revise its tax rate pursuant to the provisions of subsection 350
4 of this section as if its tax rate was at the tax rate 351
ceiling. In a year following general reassessment, if su ch 352
governing body intends to increase its tax rate, the 353
governing body shall conduct a public hearing, and in a 354
public meeting it shall adopt an ordinance, resolution, or 355
policy statement justifying its action prior to setting and 356
certifying its tax r ate. The provisions of this subdivision 357
shall not apply to any political subdivision which levies a 358
tax rate lower than its tax rate ceiling solely due to a 359
reduction required by law resulting from sales tax 360
collections. The provisions of this subdiv ision shall not 361
apply to any political subdivision which has received voter 362
approval for an increase to its tax rate ceiling subsequent 363
to setting its most recent tax rate. 364
6. (1) For the purposes of calculating state aid for 365
public schools pursuant to section 163.031, each taxing 366
authority which is a school district shall determine its 367
proposed tax rate as a blended rate of the classes or 368
subclasses of property. Such blended rate shall be 369
calculated by first determining the total tax revenu e of the 370 SB 359 13
property within the jurisdiction of the taxing authority, 371
which amount shall be equal to the sum of the products of 372
multiplying the assessed valuation of each class and 373
subclass of property by the corresponding tax rate for such 374
class or subclass, then dividing the total tax revenue by 375
the total assessed valuation of the same jurisdiction, and 376
then multiplying the resulting quotient by a factor of one 377
hundred. Where the taxing authority is a school district, 378
such blended rate shall also b e used by such school district 379
for calculating revenue from state -assessed railroad and 380
utility property as defined in chapter 151 and for 381
apportioning the tax rate by purpose. 382
(2) Each taxing authority proposing to levy a tax rate 383
in any year shall notify the clerk of the county commission 384
in the county or counties where the tax rate applies of its 385
tax rate ceiling and its proposed tax rate. Each taxing 386
authority shall express its proposed tax rate in a fraction 387
equal to the nearest one -tenth of a cent, unless its 388
proposed tax rate is in excess of one dollar, then one/one - 389
hundredth of a cent. If a taxing authority shall round to 390
one/one-hundredth of a cent, it shall round up a fraction 391
greater than or equal to five/one -thousandth of one cent to 392
the next higher one/one -hundredth of a cent; if a taxing 393
authority shall round to one -tenth of a cent, it shall round 394
up a fraction greater than or equal to five/one -hundredths 395
of a cent to the next higher one -tenth of a cent. Any 396
taxing authority levying a property tax rate shall provide 397
data, in such form as shall be prescribed by the state 398
auditor by rule, substantiating such tax rate complies with 399
Missouri law. All forms for the calculation of rates 400
pursuant to this section shall be p romulgated as a rule and 401
shall not be incorporated by reference. The state auditor 402 SB 359 14
shall promulgate rules for any and all forms for the 403
calculation of rates pursuant to this section which do not 404
currently exist in rule form or that have been incorpora ted 405
by reference. In addition, each taxing authority proposing 406
to levy a tax rate for debt service shall provide data, in 407
such form as shall be prescribed by the state auditor by 408
rule, substantiating the tax rate for debt service complies 409
with Missouri law. A tax rate proposed for annual debt 410
service requirements will be prima facie valid if, after 411
making the payment for which the tax was levied, bonds 412
remain outstanding and the debt fund reserves do not exceed 413
the following year's payments. The county clerk shall keep 414
on file and available for public inspection all such 415
information for a period of three years. The clerk shall, 416
within three days of receipt, forward a copy of the notice 417
of a taxing authority's tax rate ceiling and proposed ta x 418
rate and any substantiating data to the state auditor. The 419
state auditor shall, within fifteen days of the date of 420
receipt, examine such information and return to the county 421
clerk his or her findings as to compliance of the tax rate 422
ceiling with this section and as to compliance of any 423
proposed tax rate for debt service with Missouri law. If 424
the state auditor believes that a taxing authority's 425
proposed tax rate does not comply with Missouri law, then 426
the state auditor's findings shall include a recalculated 427
tax rate, and the state auditor may request a taxing 428
authority to submit documentation supporting such taxing 429
authority's proposed tax rate. The county clerk shall 430
immediately forward a copy of the auditor's findings to the 431
taxing authority and shall file a copy of the findings with 432
the information received from the taxing authority. The 433
taxing authority shall have fifteen days from the date of 434 SB 359 15
receipt from the county clerk of the state auditor's 435
findings and any request for support ing documentation to 436
accept or reject in writing the rate change certified by the 437
state auditor and to submit all requested information to the 438
state auditor. A copy of the taxing authority's acceptance 439
or rejection and any information submitted to the state 440
auditor shall also be mailed to the county clerk. If a 441
taxing authority rejects a rate change certified by the 442
state auditor and the state auditor does not receive 443
supporting information which justifies the taxing 444
authority's original or any s ubsequent proposed tax rate, 445
then the state auditor shall refer the perceived violations 446
of such taxing authority to the attorney general's office 447
and the attorney general is authorized to obtain injunctive 448
relief to prevent the taxing authority from l evying a 449
violative tax rate. 450
(3) In the event that the taxing authority incorrectly 451
completes the forms created and promulgated under 452
subdivision (2) of this subsection, or makes a clerical 453
error, the taxing authority may submit amended forms wit h an 454
explanation for the needed changes. If such amended forms 455
are filed under regulations prescribed by the state auditor, 456
the state auditor shall take into consideration such amended 457
forms for the purposes of this subsection. 458
7. No tax rate shall be extended on the tax rolls by 459
the county clerk unless the political subdivision has 460
complied with the foregoing provisions of this section. 461
8. Whenever a taxpayer has cause to believe that a 462
taxing authority has not complied with the provisi ons of 463
this section, the taxpayer may make a formal complaint with 464
the prosecuting attorney of the county. Where the 465
prosecuting attorney fails to bring an action within ten 466 SB 359 16
days of the filing of the complaint, the taxpayer may bring 467
a civil action pursuant to this section and institute an 468
action as representative of a class of all taxpayers within 469
a taxing authority if the class is so numerous that joinder 470
of all members is impracticable, if there are questions of 471
law or fact common to the class, if the claims or defenses 472
of the representative parties are typical of the claims or 473
defenses of the class, and if the representative parties 474
will fairly and adequately protect the interests of the 475
class. In any class action maintained pursuant to th is 476
section, the court may direct to the members of the class a 477
notice to be published at least once each week for four 478
consecutive weeks in a newspaper of general circulation 479
published in the county where the civil action is commenced 480
and in other counties within the jurisdiction of a taxing 481
authority. The notice shall advise each member that the 482
court will exclude him or her from the class if he or she so 483
requests by a specified date, that the judgment, whether 484
favorable or not, will include all members who do not 485
request exclusion, and that any member who does not request 486
exclusion may, if he or she desires, enter an appearance. 487
In any class action brought pursuant to this section, the 488
court, in addition to the relief requested, shall assess 489
against the taxing authority found to be in violation of 490
this section the reasonable costs of bringing the action, 491
including reasonable attorney's fees, provided no attorney's 492
fees shall be awarded any attorney or association of 493
attorneys who receive public funds from any source for their 494
services. Any action brought pursuant to this section shall 495
be set for hearing as soon as practicable after the cause is 496
at issue. 497 SB 359 17
9. If in any action, including a class action, the 498
court issues an order r equiring a taxing authority to revise 499
the tax rates as provided in this section or enjoins a 500
taxing authority from the collection of a tax because of its 501
failure to revise the rate of levy as provided in this 502
section, any taxpayer paying his or her tax es when an 503
improper rate is applied has erroneously paid his or her 504
taxes in part, whether or not the taxes are paid under 505
protest as provided in section 139.031 or otherwise 506
contested. The part of the taxes paid erroneously is the 507
difference in the amount produced by the original levy and 508
the amount produced by the revised levy. The township or 509
county collector of taxes or the collector of taxes in any 510
city shall refund the amount of the tax erroneously paid. 511
The taxing authority refusing to re vise the rate of levy as 512
provided in this section shall make available to the 513
collector all funds necessary to make refunds pursuant to 514
this subsection. No taxpayer shall receive any interest on 515
any money erroneously paid by him or her pursuant to thi s 516
subsection. Effective in the 1994 tax year, nothing in this 517
section shall be construed to require a taxing authority to 518
refund any tax erroneously paid prior to or during the third 519
tax year preceding the current tax year. 520
10. Any rule or portion of a rule, as that term is 521
defined in section 536.010, that is created under the 522
authority delegated in this section shall become effective 523
only if it complies with and is subject to all of the 524
provisions of chapter 536 and, if applicable, section 525
536.028. This section and chapter 536 are nonseverable and 526
if any of the powers vested with the general assembly 527
pursuant to chapter 536 to review, to delay the effective 528
date, or to disapprove and annul a rule are subsequently 529 SB 359 18
held unconstitutional, then the grant of rulemaking 530
authority and any rule proposed or adopted after August 28, 531
2004, shall be invalid and void. 532
137.115. 1. All other laws to the contrary 1
notwithstanding, the assessor or the assessor's deputies in 2
all counties of this state including the City of St. Louis 3
shall annually make a list of all real and tangible personal 4
property taxable in the assessor's city, county, town or 5
district. Except as otherwise provided in subsection 3 of 6
this section and sectio n 137.078, for all calendar years 7
ending on or before December 31, 2025, the assessor shall 8
annually assess all personal property at thirty -three and 9
one-third percent of its true value in money as of January 10
first of each calendar year. Except as otherwise provided 11
in subsection 3 of this section and section 137.078, for all 12
calendar years beginning on or after January 1, 2026, the 13
assessor shall annually assess all personal property at 14
thirty-one percent of its true value in money as of January 15
first of each calendar year. The assessor shall annually 16
assess all real property, including any new construction and 17
improvements to real property, and possessory interests in 18
real property at the percent of its true value in money set 19
in subsection 5 of this section. The true value in money of 20
any possessory interest in real property in subclass (3), 21
where such real property is on or lies within the ultimate 22
airport boundary as shown by a federal airport layout plan, 23
as defined by 14 CFR 151.5, of a commercial airport having a 24
FAR Part 139 certification and owned by a political 25
subdivision, shall be the otherwise applicable true value in 26
money of any such possessory interest in real property, less 27
the total dollar amount of costs paid by a pa rty, other than 28
the political subdivision, towards any new construction or 29 SB 359 19
improvements on such real property completed after January 30
1, 2008, and which are included in the above -mentioned 31
possessory interest, regardless of the year in which such 32
costs were incurred or whether such costs were considered in 33
any prior year. The assessor shall annually assess all real 34
property in the following manner: new assessed values shall 35
be determined as of January first of each odd -numbered year 36
and shall be entered in the assessor's books; those same 37
assessed values shall apply in the following even -numbered 38
year, except for new construction and property improvements 39
which shall be valued as though they had been completed as 40
of January first of the precedi ng odd-numbered year. The 41
assessor may call at the office, place of doing business, or 42
residence of each person required by this chapter to list 43
property, and require the person to make a correct statement 44
of all taxable tangible personal property own ed by the 45
person or under his or her care, charge or management, 46
taxable in the county. On or before January first of each 47
even-numbered year, the assessor shall prepare and submit a 48
two-year assessment maintenance plan to the county governing 49
body and the state tax commission for their respective 50
approval or modification. The county governing body shall 51
approve and forward such plan or its alternative to the plan 52
to the state tax commission by February first. If the 53
county governing body fails to forward the plan or its 54
alternative to the plan to the state tax commission by 55
February first, the assessor's plan shall be considered 56
approved by the county governing body. If the state tax 57
commission fails to approve a plan and if the state tax 58
commission and the assessor and the governing body of the 59
county involved are unable to resolve the differences, in 60
order to receive state cost -share funds outlined in section 61 SB 359 20
137.750, the county or the assessor shall petition the 62
administrative hearin g commission, by May first, to decide 63
all matters in dispute regarding the assessment maintenance 64
plan. Upon agreement of the parties, the matter may be 65
stayed while the parties proceed with mediation or 66
arbitration upon terms agreed to by the parties . The final 67
decision of the administrative hearing commission shall be 68
subject to judicial review in the circuit court of the 69
county involved. In the event a valuation of subclass (1) 70
real property within any county with a charter form of 71
government, or within a city not within a county, is made by 72
a computer, computer -assisted method or a computer program, 73
the burden of proof, supported by clear, convincing and 74
cogent evidence to sustain such valuation, shall be on the 75
assessor at any hearing or appeal. In any such county, 76
unless the assessor proves otherwise, there shall be a 77
presumption that the assessment was made by a computer, 78
computer-assisted method or a computer program. Such 79
evidence shall include, but shall not be limited to, the 80
following: 81
(1) The findings of the assessor based on an appraisal 82
of the property by generally accepted appraisal techniques; 83
and 84
(2) The purchase prices from sales of at least three 85
comparable properties and the address or location thereof . 86
As used in this subdivision, the word "comparable" means 87
that: 88
(a) Such sale was closed at a date relevant to the 89
property valuation; and 90
(b) Such properties are not more than one mile from 91
the site of the disputed property, except where no similar 92
properties exist within one mile of the disputed property, 93 SB 359 21
the nearest comparable property shall be used. Such 94
property shall be within five hundred square feet in size of 95
the disputed property, and resemble the disputed property in 96
age, floor plan, number of rooms, and other relevant 97
characteristics. 98
2. Assessors in each county of this state and the City 99
of St. Louis may send personal property assessment forms 100
through the mail. 101
3. The following items of personal property sh all each 102
constitute separate subclasses of tangible personal property 103
and shall be assessed and valued for the purposes of 104
taxation at the following percentages of their true value in 105
money: 106
(1) Grain and other agricultural crops in an 107
unmanufactured condition, one -half of one percent; 108
(2) Livestock, twelve percent; 109
(3) Farm machinery, twelve percent; 110
(4) Motor vehicles which are eligible for registration 111
as and are registered as historic motor vehicles pursuant to 112
section 301.131 and aircraft which are at least twenty -five 113
years old and which are used solely for noncommercial 114
purposes and are operated less than two hundred hours per 115
year or aircraft that are home built from a kit, five 116
percent; 117
(5) Poultry, twelve percent; and 118
(6) Tools and equipment used for pollution control and 119
tools and equipment used in retooling for the purpose of 120
introducing new product lines or used for making 121
improvements to existing products by any company which is 122
located in a state enterprise zone and which is identified 123
by any standard industrial classification number cited in 124
subdivision (7) of section 135.200, twenty -five percent. 125 SB 359 22
4. The person listing the property shall enter a true 126
and correct statement of the proper ty, in a printed blank 127
prepared for that purpose. The statement, after being 128
filled out, shall be signed and either affirmed or sworn to 129
as provided in section 137.155. The list shall then be 130
delivered to the assessor. 131
5. (1) All subclasses of real property, as such 132
subclasses are established in Section 4(b) of Article X of 133
the Missouri Constitution and defined in section 137.016, 134
shall be assessed at the following percentages of true value: 135
(a) For real property in subclass (1), ninet een 136
percent; 137
(b) For real property in subclass (2), twelve percent; 138
and 139
(c) For real property in subclass (3), thirty -two 140
percent. 141
(2) A taxpayer may apply to the county assessor, or, 142
if not located within a county, then the assessor of such 143
city, for the reclassification of such taxpayer's real 144
property if the use or purpose of such real property is 145
changed after such property is assessed under the provisions 146
of this chapter. If the assessor determines that such 147
property shall be reclassified, he or she shall determine 148
the assessment under this subsection based on the percentage 149
of the tax year that such property was classified in each 150
subclassification. 151
6. Manufactured homes, as defined in section 700.010, 152
which are actually used as dwelling units shall be assessed 153
at the same percentage of true value as residential real 154
property for the purpose of taxation. The percentage of 155
assessment of true value for such manufactured homes shall 156
be the same as for residential real property. If the county 157 SB 359 23
collector cannot identify or find the manufactured home when 158
attempting to attach the manufactured home for payment of 159
taxes owed by the manufactured home owner, the county 160
collector may request the county commission to ha ve the 161
manufactured home removed from the tax books, and such 162
request shall be granted within thirty days after the 163
request is made; however, the removal from the tax books 164
does not remove the tax lien on the manufactured home if it 165
is later identified or found. For purposes of this section, 166
a manufactured home located in a manufactured home rental 167
park, rental community or on real estate not owned by the 168
manufactured home owner shall be considered personal 169
property. For purposes of this section, a manufactured home 170
located on real estate owned by the manufactured home owner 171
may be considered real property. 172
7. Each manufactured home assessed shall be considered 173
a parcel for the purpose of reimbursement pursuant to 174
section 137.750, unless the manufactured home is deemed to 175
be real estate as defined in subsection 7 of section 442.015 176
and assessed as a realty improvement to the existing real 177
estate parcel. 178
8. Any amount of tax due and owing based on the 179
assessment of a manufactured home shall be included on the 180
personal property tax statement of the manufactured home 181
owner unless the manufactured home is deemed to be real 182
estate as defined in subsection 7 of section 442.015, in 183
which case the amount of tax due and owing on the a ssessment 184
of the manufactured home as a realty improvement to the 185
existing real estate parcel shall be included on the real 186
property tax statement of the real estate owner. 187
9. The assessor of each county and each city not 188
within a county shall us e the trade-in value published in 189 SB 359 24
the October issue of the National Automobile Dealers' 190
Association Official Used Car Guide, or its successor 191
publication, as the recommended guide of information for 192
determining the true value of motor vehicles describe d in 193
such publication. The assessor shall not use a value that 194
is greater than the average trade -in value in determining 195
the true value of the motor vehicle without performing a 196
physical inspection of the motor vehicle. For vehicles two 197
years old or newer from a vehicle's model year, the assessor 198
may use a value other than average without performing a 199
physical inspection of the motor vehicle. In the absence of 200
a listing for a particular motor vehicle in such 201
publication, the assessor shall use s uch information or 202
publications which in the assessor's judgment will fairly 203
estimate the true value in money of the motor vehicle. 204
10. Before the assessor may increase the assessed 205
valuation of any parcel of subclass (1) real property by 206
more than fifteen percent since the last assessment, 207
excluding increases due to new construction or improvements, 208
the assessor shall conduct a physical inspection of such 209
property. 210
11. If a physical inspection is required, pursuant to 211
subsection 10 of this section, the assessor shall notify the 212
property owner of that fact in writing and shall provide the 213
owner clear written notice of the owner's rights relating to 214
the physical inspection. If a physical inspection is 215
required, the property owner may request that an interior 216
inspection be performed during the physical inspection. The 217
owner shall have no less than thirty days to notify the 218
assessor of a request for an interior physical inspection. 219
12. A physical inspection, as required by subs ection 220
10 of this section, shall include, but not be limited to, an 221 SB 359 25
on-site personal observation and review of all exterior 222
portions of the land and any buildings and improvements to 223
which the inspector has or may reasonably and lawfully gain 224
external access, and shall include an observation and review 225
of the interior of any buildings or improvements on the 226
property upon the timely request of the owner pursuant to 227
subsection 11 of this section. Mere observation of the 228
property via a drive -by inspection or the like shall not be 229
considered sufficient to constitute a physical inspection as 230
required by this section. 231
13. A county or city collector may accept credit cards 232
as proper form of payment of outstanding property tax or 233
license due. No county or city collector may charge 234
surcharge for payment by credit card which exceeds the fee 235
or surcharge charged by the credit card bank, processor, or 236
issuer for its service. A county or city collector may 237
accept payment by electronic transfers o f funds in payment 238
of any tax or license and charge the person making such 239
payment a fee equal to the fee charged the county by the 240
bank, processor, or issuer of such electronic payment. 241
14. Any county or city not within a county in this 242
state may, by an affirmative vote of the governing body of 243
such county, opt out of the provisions of this section and 244
sections 137.073, 138.060, and 138.100 as enacted by house 245
bill no. 1150 of the ninety -first general assembly, second 246
regular session and sect ion 137.073 as modified by house 247
committee substitute for senate substitute for senate 248
committee substitute for senate bill no. 960, ninety -second 249
general assembly, second regular session, for the next year 250
of the general reassessment, prior to January first of any 251
year. No county or city not within a county shall exercise 252
this opt-out provision after implementing the provisions of 253 SB 359 26
this section and sections 137.073, 138.060, and 138.100 as 254
enacted by house bill no. 1150 of the ninety -first general 255
assembly, second regular session and section 137.073 as 256
modified by house committee substitute for senate substitute 257
for senate committee substitute for senate bill no. 960, 258
ninety-second general assembly, second regular session, in a 259
year of general reassessment. For the purposes of applying 260
the provisions of this subsection, a political subdivision 261
contained within two or more counties where at least one of 262
such counties has opted out and at least one of such 263
counties has not opted out shall cal culate a single tax rate 264
as in effect prior to the enactment of house bill no. 1150 265
of the ninety-first general assembly, second regular 266
session. A governing body of a city not within a county or 267
a county that has opted out under the provisions of thi s 268
subsection may choose to implement the provisions of this 269
section and sections 137.073, 138.060, and 138.100 as 270
enacted by house bill no. 1150 of the ninety -first general 271
assembly, second regular session, and section 137.073 as 272
modified by house com mittee substitute for senate substitute 273
for senate committee substitute for senate bill no. 960, 274
ninety-second general assembly, second regular session, for 275
the next year of general reassessment, by an affirmative 276
vote of the governing body prior to De cember thirty-first of 277
any year. 278
15. The governing body of any city of the third 279
classification with more than twenty -six thousand three 280
hundred but fewer than twenty -six thousand seven hundred 281
inhabitants located in any county that has exercised its 282
authority to opt out under subsection 14 of this section may 283
levy separate and differing tax rates for real and personal 284
property only if such city bills and collects its own 285 SB 359 27
property taxes or satisfies the entire cost of the billing 286
and collection of such separate and differing tax rates. 287
Such separate and differing rates shall not exceed such 288
city's tax rate ceiling. 289
16. Any portion of real property that is available as 290
reserve for strip, surface, or coal mining for minerals for 291
purposes of excavation for future use or sale to others that 292
has not been bonded and permitted under chapter 444 shall be 293
assessed based upon how the real property is currently being 294
used. Any information provided to a county assessor, state 295
tax commission, state agency, or political subdivision 296
responsible for the administration of tax policies shall, in 297
the performance of its duties, make available all books, 298
records, and information requested, except such books, 299
records, and information as are by law declared confidential 300
in nature, including individually identifiable information 301
regarding a specific taxpayer or taxpayer's mine property. 302
For purposes of this subsection, "mine property" shall mean 303
all real property that is in use or readily availa ble as a 304
reserve for strip, surface, or coal mining for minerals for 305
purposes of excavation for current or future use or sale to 306
others that has been bonded and permitted under chapter 444. 307