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. 599
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (15).
2152S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 138.060, 138.434, and 139.031, RSMo, and to enact in lieu thereof four new
sections relating to property taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 138.060, 138.434, and 139.031, RSMo, 1
are repealed and four new sections enacted in lieu thereof, to 2
be known as sections 137.132, 138.060, 138.434, and 139.031, to 3
read as follows:4
137.132. 1. For the purposes of this section, and in 1
any appeal alleging a violation thereof, the following terms 2
shall mean: 3
(1) "Common level of assessment", the ratio of the 4
total of the assessor's assessed values for all real 5
property in a subclass, as verified pursuant to section 6
137.245, to the total of actual true values in money of the 7
same real property, expressed as a percentage, and measured 8
by an assessment ratio study; 9
(2) "Individual level of assessment", the ratio of an 10
assessor's assessed value for an individual parcel of real 11
property, as verified pursuant to section 137.245, to the 12
actual true value in money of such real property, expressed 13
as a percentage. 14
2. The level of assessment of all real property in 15
subclass (1) or subclass (3), as provided in section 16
137.115, shall be uniform and equal throughout each 17 SB 599 2
subclass. If the common level of assessment in either 18
subclass is lower than the individual level o f assessment of 19
any parcel in the same subclass, the individual level of 20
assessment of such parcel shall be lowered to the common 21
level of assessment for the subclass upon appeal by the 22
property owner to the local board of equalization, state tax 23
commission, or circuit court. 24
3. When determining the individual level of assessment 25
of a parcel of real property, the lesser of the assessor's 26
appraised value, as verified pursuant to section 137.245, or 27
the appraised value set by the local board of equalization 28
shall be presumed to be the actual true value in money for 29
such real property, absent substantial and persuasive 30
evidence establishing a lower true value in money. 31
138.060. 1. The county board of equalization shall, 1
in a summary way, determine all appeals from the valuation 2
of property made by the assessor, and shall correct and 3
adjust the assessment accordingly. There shall be no 4
presumption that the assessor's valuation is correct. In 5
any county with a charter f orm of government with a 6
population greater than two hundred eighty thousand 7
inhabitants but less than two hundred eighty -five thousand 8
inhabitants, in any county with a charter form of government 9
with greater than one million inhabitants, in any city not 10
within a county, and in any other county for any property 11
whose assessed valuation increased at least fifteen percent 12
from the previous assessment unless the increase is due to 13
new construction or improvement, the assessor shall have the 14
burden to prove that the assessor's valuation does not 15
exceed the true market value of the subject property. In 16
such county or city, in the event a physical inspection of 17
the subject property is required by subsection 10 of section 18 SB 599 3
137.115, the assessor shall have the burden to establish the 19
manner in which the physical inspection was performed and 20
shall have the burden to prove that the physical inspection 21
was performed in accordance with section 137.115. In such 22
county or city, in the event the assessor fails to provide 23
sufficient evidence to establish that the physical 24
inspection was performed in accordance with section 137.115, 25
the property owner shall prevail on the appeal as a matter 26
of law, and the assessor's increased assessed valuation 27
shall be void in its entirety, and the previous assessed 28
valuation shall be applied to the property in place of the 29
increased assessed valuation . At any hearing before the 30
state tax commission or a court of competent jurisdiction of 31
an appeal of assessment f rom a first class charter county or 32
a city not within a county, the assessor shall not advocate 33
nor present evidence advocating a valuation higher than that 34
value finally determined by the assessor or the value 35
determined by the board of equalization, whichever is 36
higher, for that assessment period. 37
2. The county clerk shall keep an accurate record of 38
the proceedings and orders of the board, and the assessor 39
shall correct all erroneous assessments, and the clerk shall 40
adjust the tax book accor ding to the orders of such board 41
and the orders of the state tax commission, except that in 42
adding or deducting such percent to each tract or parcel of 43
real estate as required by such board or state tax 44
commission, he shall add or deduct in each case a ny 45
fractional sum of less than fifty cents, so that the value 46
of any separate tract shall contain no fractions of a dollar. 47
138.434. In any first class charter county or a city 1
not within a county [may require by ordinance or charter the 2
reimbursement to], a taxpayer [for the amount of just and 3 SB 599 4
reasonable appraisal costs, attorney fees and court costs ] 4
shall be entitled to an award of all attorney's fees and 5
costs of litigation resulting from an evidentiary hearing 6
before the state tax commission or a court of competent 7
jurisdiction, including, but not limited to, attorney's 8
fees, appraisal costs, witness fees, and court costs, 9
whether paid directly by the taxpayer or paid by an 10
attorney, tax agent, or other third party, if such appeal 11
results in a final decision reducing the appraised value of 12
residential property by at least fifteen percent or the 13
appraised value of utility, industrial railroad and other 14
subclass three property by at least twenty -five percent from 15
the appraised value determined by the board of equalization 16
for that tax year. The commission or court awarding such 17
fees and costs shall consider the reasonableness of the fees 18
and costs within the context of the particular case. Such 19
fees and costs shall not exceed [one] five thousand dollars 20
for a residential property appeal. Such fees and costs for 21
utility, industrial railroad or other subclass three 22
property appeals shall not exceed the lesser of [four] five 23
thousand dollars or twenty -five percent of the tax savings 24
resulting from the appeal. The provisions of this section 25
shall only apply to the first contested year when cases are 26
tried on a consolidated basis. 27
139.031. 1. Any taxpayer may protest all or any part 1
of any current taxes assessed against the taxpayer, except 2
taxes collected by the director of revenue of Missouri. Any 3
such taxpayer desiring to pay any current taxes under 4
protest or while paying taxes based upon a disputed 5
assessment shall[, at the time of paying such taxes,] make 6
full payment of the current tax bill before the delinquency 7
date and file with the collector before the delinquency date 8 SB 599 5
a written statement setting forth the grounds on which the 9
protest is based. The statement shall include the true 10
value in money claimed by the taxpayer if disputed. An 11
appeal before the state tax commission shall not be 12
dismissed on the grounds that a taxpayer failed to file a 13
written statement when paying taxes based upon a disputed 14
assessment. 15
2. Upon receiving [payment of current taxes under ] 16
written notice of protest under subsection 1 of this section 17
or upon receiving from the state tax commission or the 18
circuit court notice of an appeal from the state tax 19
commission or the circuit court under section 138.430, 20
[along with] and full payment of the current tax bill before 21
the delinquency date, the collector shall disburse to the 22
proper official all portions of taxes not protested or not 23
disputed by the taxpayer and shall impound in a sep arate 24
fund all portions of such taxes which are protested or in 25
dispute. Every taxpayer protesting the payment of current 26
taxes under subsection 1 of this section shall, within 27
ninety days after filing his protest, commence an action 28
against the collector by filing a petition for the recovery 29
of the amount protested in the circuit court of the county 30
in which the collector maintains his office. If any 31
taxpayer so protesting his taxes under subsection 1 of this 32
section shall fail to commence an ac tion in the circuit 33
court for the recovery of the taxes protested within the 34
time prescribed in this subsection, such protest shall 35
become null and void and of no effect, and the collector 36
shall then disburse to the proper official the taxes 37
impounded, and any interest earned thereon, as provided 38
above in this subsection. 39 SB 599 6
3. No action against the collector shall be commenced 40
by any taxpayer who has, effective for the current tax year, 41
filed with the state tax commission or the circuit court a 42
timely and proper appeal of the assessment of the taxpayer's 43
property. The portion of taxes in dispute from an appeal of 44
an assessment shall be impounded in a separate fund and the 45
commission in its decision and order issued under chapter 46
138 or the circuit court in its judgment may order all or 47
any part of such taxes refunded to the taxpayer, or may 48
authorize the collector to release and disburse all or any 49
part of such taxes. 50
4. Trial of the action for recovery of taxes protested 51
under subsection 1 of this section in the circuit court 52
shall be in the manner prescribed for nonjury civil 53
proceedings, and, after determination of the issues, the 54
court shall make such orders as may be just and equitable to 55
refund to the taxpayer all or any p art of the current taxes 56
paid under protest, together with any interest earned 57
thereon, or to authorize the collector to release and 58
disburse all or any part of the impounded taxes, and any 59
interest earned thereon, to the appropriate officials of the 60
taxing authorities. Either party to the proceedings may 61
appeal the determination of the circuit court. 62
5. All the county collectors of taxes, and the 63
collector of taxes in any city not within a county, shall, 64
upon written application of a taxpaye r, refund or credit 65
against the taxpayer's tax liability in the following 66
taxable year and subsequent consecutive taxable years until 67
the taxpayer has received credit in full for any real or 68
personal property tax mistakenly or erroneously levied 69
against the taxpayer and collected in whole or in part by 70
the collector. Such application shall be filed within three 71 SB 599 7
years after the tax is mistakenly or erroneously paid. The 72
governing body, or other appropriate body or official of the 73
county or city not within a county, shall make available to 74
the collector funds necessary to make refunds under this 75
subsection by issuing warrants upon the fund to which the 76
mistaken or erroneous payment has been credited, or 77
otherwise. 78
6. No taxpayer shall rece ive any interest on any money 79
paid in by the taxpayer erroneously. 80
7. All protested taxes impounded under protest under 81
subsection 1 of this section and all disputed taxes 82
impounded under notice as required by section 138.430 shall 83
be invested by the collector in the same manner as assets 84
specified in section 30.260 for investment of state moneys. 85
A taxpayer who is entitled to a refund of protested or 86
disputed taxes shall also receive the interest earned on the 87
investment thereof. If the collector is ordered to release 88
and disburse all or part of the taxes paid under protest or 89
dispute to the proper official, such taxes shall be 90
disbursed along with the proportional amount of interest 91
earned on the investment of the taxes due the particul ar 92
taxing authority. 93
8. Any taxing authority may request to be notified by 94
the county collector of current taxes paid under protest. 95
Such request shall be in writing and submitted on or before 96
February first next following the delinquent date of current 97
taxes paid under protest or disputed, and the county 98
collector shall provide such information on or before March 99
first of the same year to the requesting taxing authority of 100
the taxes paid under protest and disputed taxes which would 101
be received by such taxing authority if the funds were not 102
the subject of a protest or dispute. Any taxing authority 103 SB 599 8
may apply to the circuit court of the county or city not 104
within a county in which a collector has impounded protested 105
or disputed taxes under this section and, upon a 106
satisfactory showing that such taxing authority would 107
receive such impounded tax funds if they were not the 108
subject of a protest or dispute and that such taxing 109
authority has the financial ability and legal capacity to 110
repay such impounded tax funds in the event a decision 111
ordering a refund to the taxpayer is subsequently made, the 112
circuit court shall order, pendente lite, the disbursal of 113
all or any part of such impounded tax funds to such taxing 114
authority. The circuit court issuing an order under this 115
subsection shall retain jurisdiction of such matter for 116
further proceedings, if any, to compel restitution of such 117
tax funds to the taxpayer. In the event that any protested 118
or disputed tax funds refunded to a taxpayer were disbursed 119
to a taxing authority under this subsection instead of being 120
held and invested by the collector under subsection 7 of 121
this section, the taxpayer shall be entitled to interest on 122
all refunded tax funds , from the date that the disputed 123
taxes were distributed to a taxing authority through the 124
date of the refund, at the [annual rate] rates calculated by 125
the state treasurer and applied by the director of revenue 126
under section 32.068. This measure of interest shall only 127
apply to protested or disputed tax funds actually 128
distributed to a taxing authority pursuant to this 129
subsection. In the event of a refund of protested or 130
disputed tax funds which remain impounded by the collector, 131
the taxpayer shall instead be entitled to the interest 132
actually earned on those refunded impounded tax funds under 133
subsection 7 of this section. Any sovereign or official 134
immunity otherwise applicable to the taxing authorities is 135 SB 599 9
hereby waived for all purposes related to this subsection, 136
and the taxpayer is expressly authorized to seek an order 137
enforcing this provision from the circuit court that 138
originally ordered the distribution of the protested or 139
disputed funds, or directly from the state tax commission, 140
if the tax appeal that resulted in the ref und was heard and 141
determined by the state tax commission. 142
9. No appeal filed from the circuit court's or state 143
tax commission's determination pertaining to the amount of 144
refund shall stay any order of refund, but the decision 145
filed by any court o f last review modifying that 146
determination shall be binding on the parties, and the 147
decision rendered shall be complied with by the party 148
affected by any modification within ninety days of the date 149
of such decision. No taxpayer shall receive any inter est on 150
any additional award of refund, and the collector shall not 151
receive any interest on any ordered return of refund in 152
whole or in part. In the event that a taxpayer is entitled 153
to a refund, the collector shall issue the refund to the 154
taxpayer within thirty days of the date that the circuit 155
court's or state tax commission's determination establishing 156
the amount of the refund becomes final, and if the collector 157
does not issue the refund within thirty days, the taxpayer 158
shall be entitled to inte rest on the refund at the rate 159
established by the director of revenue under section 32.065 160
for the period of time after the expiration of the thirty 161
days and until the refund is issued, in addition to all 162
other interest due to the taxpayer under this s ection. 163