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. 786
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR NICOLA.
3105S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.115, 138.060, 138.135, 138.434, and 139.031, RSMo, and to enact in lieu
thereof six new sections relating to property taxes.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.115, 138.060, 138.135, 138.434, 1
and 139.031, RSMo, are repealed and six new sections enacted in 2
lieu thereof, to be known as sections 137.115, 137.132, 138.060, 3
138.135, 138.434, and 139.031, to read as follows:4
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 section 137.078, the assessor shall 7
annually assess all personal property at thirty -three and 8
one-third percent of its true value in money as of January 9
first of each calendar year. The assessor shall annually 10
assess all real property, including any new construction and 11
improvements to real propert y, and possessory interests in 12
real property at the percent of its true value in money set 13
in subsection 5 of this section. The true value in money of 14
any possessory interest in real property in subclass (3), 15
where such real property is on or lies wit hin the ultimate 16
airport boundary as shown by a federal airport layout plan, 17 SB 786 2
as defined by 14 CFR 151.5, of a commercial airport having a 18
FAR Part 139 certification and owned by a political 19
subdivision, shall be the otherwise applicable true value in 20
money of any such possessory interest in real property, less 21
the total dollar amount of costs paid by a party, other than 22
the political subdivision, towards any new construction or 23
improvements on such real property completed after January 24
1, 2008, and which are included in the above -mentioned 25
possessory interest, regardless of the year in which such 26
costs were incurred or whether such costs were considered in 27
any prior year. The assessor shall annually assess all real 28
property in the following man ner: new assessed values shall 29
be determined as of January first of each odd -numbered year 30
and shall be entered in the assessor's books; those same 31
assessed values shall apply in the following even -numbered 32
year, except for new construction and propert y improvements 33
which shall be valued as though they had been completed as 34
of January first of the preceding odd -numbered year. The 35
assessor may call at the office, place of doing business, or 36
residence of each person required by this chapter to list 37
property, and require the person to make a correct statement 38
of all taxable tangible personal property owned by the 39
person or under his or her care, charge or management, 40
taxable in the county. On or before January first of each 41
even-numbered year, the assessor shall prepare and submit a 42
two-year assessment maintenance plan to the county governing 43
body and the state tax commission for their respective 44
approval or modification. The county governing body shall 45
approve and forward such plan or its al ternative to the plan 46
to the state tax commission by February first. If the 47
county governing body fails to forward the plan or its 48
alternative to the plan to the state tax commission by 49 SB 786 3
February first, the assessor's plan shall be considered 50
approved by the county governing body. If the state tax 51
commission fails to approve a plan and if the state tax 52
commission and the assessor and the governing body of the 53
county involved are unable to resolve the differences, in 54
order to receive state cost -share funds outlined in section 55
137.750, the county or the assessor shall petition the 56
administrative hearing commission, by May first, to decide 57
all matters in dispute regarding the assessment maintenance 58
plan. Upon agreement of the parties, the matter may be 59
stayed while the parties proceed with mediation or 60
arbitration upon terms agreed to by the parties. The final 61
decision of the administrative hearing commission shall be 62
subject to judicial review in the circuit court of the 63
county involved. In the event a valuation of subclass (1) 64
real property within any county with a charter form of 65
government, or within a city not within a county, is made by 66
a computer, computer -assisted method or a computer program, 67
the burden of proof, supported by cl ear, convincing and 68
cogent evidence to sustain such valuation, shall be on the 69
assessor at any hearing or appeal. In any such county, 70
unless the assessor proves otherwise, there shall be a 71
presumption that the assessment was made by a computer, 72
computer-assisted method or a computer program. Such 73
evidence shall include, but shall not be limited to, the 74
following: 75
(1) The findings of the assessor based on an appraisal 76
of the property by generally accepted appraisal techniques; 77
and 78
(2) The purchase prices from sales of at least three 79
comparable properties and the address or location thereof. 80 SB 786 4
As used in this subdivision, the word "comparable" means 81
that: 82
(a) Such sale was closed at a date relevant to the 83
property valuation; and 84
(b) Such properties are not more than one mile from 85
the site of the disputed property, except where no similar 86
properties exist within one mile of the disputed property, 87
the nearest comparable property shall be used. Such 88
property shall be with in five hundred square feet in size of 89
the disputed property, and resemble the disputed property in 90
age, floor plan, number of rooms, and other relevant 91
characteristics. 92
2. Assessors in each county of this state and the City 93
of St. Louis may send personal property assessment forms 94
through the mail. 95
3. The following items of personal property shall each 96
constitute separate subclasses of tangible personal property 97
and shall be assessed and valued for the purposes of 98
taxation at the followi ng percentages of their true value in 99
money: 100
(1) Grain and other agricultural crops in an 101
unmanufactured condition, one -half of one percent; 102
(2) Livestock, twelve percent; 103
(3) Farm machinery, twelve percent; 104
(4) Motor vehicles which are eligible for registration 105
as and are registered as historic motor vehicles pursuant to 106
section 301.131 and aircraft which are at least twenty -five 107
years old and which are used solely for noncommercial 108
purposes and are operated less than two hund red hours per 109
year or aircraft that are home built from a kit, five 110
percent; 111
(5) Poultry, twelve percent; and 112 SB 786 5
(6) Tools and equipment used for pollution control and 113
tools and equipment used in retooling for the purpose of 114
introducing new product lines or used for making 115
improvements to existing products by any company which is 116
located in a state enterprise zone and which is identified 117
by any standard industrial classification number cited in 118
subdivision (7) of section 135.200, twenty -five percent. 119
4. The person listing the property shall enter a true 120
and correct statement of the property, in a printed blank 121
prepared for that purpose. The statement, after being 122
filled out, shall be signed and either affirmed or sworn to 123
as provided in section 137.155. The list shall then be 124
delivered to the assessor. 125
5. (1) All subclasses of real property, as such 126
subclasses are established in Section 4(b) of Article X of 127
the Missouri Constitution and defined in section 137.016, 128
shall be assessed at the following percentages of true value: 129
(a) For real property in subclass (1), nineteen 130
percent; 131
(b) For real property in subclass (2), twelve percent; 132
and 133
(c) For real property in subclass (3), thirty -two 134
percent. 135
(2) A taxpayer may apply to the county assessor, or, 136
if not located within a county, then the assessor of such 137
city, for the reclassification of such taxpayer's real 138
property if the use or purpose of such real property is 139
changed after such property is assessed under the provisions 140
of this chapter. If the assessor determines that such 141
property shall be reclassified, he or she shall determine 142
the assessment under this subsection based on the percentage 143 SB 786 6
of the tax year that such property was class ified in each 144
subclassification. 145
6. Manufactured homes, as defined in section 700.010, 146
which are actually used as dwelling units shall be assessed 147
at the same percentage of true value as residential real 148
property for the purpose of taxation. The percentage of 149
assessment of true value for such manufactured homes shall 150
be the same as for residential real property. If the county 151
collector cannot identify or find the manufactured home when 152
attempting to attach the manufactured home for payment o f 153
taxes owed by the manufactured home owner, the county 154
collector may request the county commission to have the 155
manufactured home removed from the tax books, and such 156
request shall be granted within thirty days after the 157
request is made; however, the removal from the tax books 158
does not remove the tax lien on the manufactured home if it 159
is later identified or found. For purposes of this section, 160
a manufactured home located in a manufactured home rental 161
park, rental community or on real estate not o wned by the 162
manufactured home owner shall be considered personal 163
property. For purposes of this section, a manufactured home 164
located on real estate owned by the manufactured home owner 165
may be considered real property. 166
7. Each manufactured home a ssessed shall be considered 167
a parcel for the purpose of reimbursement pursuant to 168
section 137.750, unless the manufactured home is deemed to 169
be real estate as defined in subsection 7 of section 442.015 170
and assessed as a realty improvement to the existi ng real 171
estate parcel. 172
8. Any amount of tax due and owing based on the 173
assessment of a manufactured home shall be included on the 174
personal property tax statement of the manufactured home 175 SB 786 7
owner unless the manufactured home is deemed to be real 176
estate as defined in subsection 7 of section 442.015, in 177
which case the amount of tax due and owing on the assessment 178
of the manufactured home as a realty improvement to the 179
existing real estate parcel shall be included on the real 180
property tax statement of the real estate owner. 181
9. The assessor of each county and each city not 182
within a county shall use the trade -in value published in 183
the October issue of the National Automobile Dealers' 184
Association Official Used Car Guide, or its successor 185
publication, as the recommended guide of information for 186
determining the true value of motor vehicles described in 187
such publication. The assessor shall not use a value that 188
is greater than the average trade -in value in determining 189
the true value of the mo tor vehicle without performing a 190
physical inspection of the motor vehicle. For vehicles two 191
years old or newer from a vehicle's model year, the assessor 192
may use a value other than average without performing a 193
physical inspection of the motor vehicle. In the absence of 194
a listing for a particular motor vehicle in such 195
publication, the assessor shall use such information or 196
publications which in the assessor's judgment will fairly 197
estimate the true value in money of the motor vehicle. 198
10. Before the assessor may increase the assessed 199
valuation of any parcel of subclass (1) real property by 200
more than fifteen percent since the last assessment, 201
excluding increases due to new construction or improvements, 202
the assessor shall conduct a physical in spection of such 203
property. 204
11. If a physical inspection is required [,] pursuant 205
to subsection 10 of this section, the assessor shall notify 206
the property owner of that fact in writing and shall provide 207 SB 786 8
the owner clear written notice of the owner's rights 208
relating to the physical inspection. If a physical 209
inspection is required, the property owner may request that 210
an interior inspection be performed during the physical 211
inspection. The owner shall have no less than thirty days 212
prior to the physical inspection to notify the assessor of a 213
request for an interior physical inspection. 214
12. A physical inspection [, as] required by subsection 215
10 of this section[,] shall be completed prior to July first 216
of the reassessment year and shall include, but not be 217
limited to, an on-site personal observation and review of 218
all exterior portions of the land and any buildings and 219
improvements to which the inspector has or may reasonably 220
and lawfully gain external access, and shall include an 221
observation and review of the interior of any buildings or 222
improvements on the property upon the timely request of the 223
owner pursuant to subsection 11 of this section. Mere 224
observation of the property via a drive -by inspection or the 225
like shall not be consider ed sufficient to constitute a 226
physical inspection as required by this section. 227
13. A county or city collector may accept credit cards 228
as proper form of payment of outstanding property tax or 229
license due. No county or city collector may charge 230
surcharge for payment by credit card which exceeds the fee 231
or surcharge charged by the credit card bank, processor, or 232
issuer for its service. A county or city collector may 233
accept payment by electronic transfers of funds in payment 234
of any tax or licens e and charge the person making such 235
payment a fee equal to the fee charged the county by the 236
bank, processor, or issuer of such electronic payment. 237
14. Any county or city not within a county in this 238
state may, by an affirmative vote of the governi ng body of 239 SB 786 9
such county, opt out of the provisions of this section and 240
sections 137.073, 138.060, and 138.100 as enacted by house 241
bill no. 1150 of the ninety -first general assembly, second 242
regular session and section 137.073 as modified by house 243
committee substitute for senate substitute for senate 244
committee substitute for senate bill no. 960, ninety -second 245
general assembly, second regular session, for the next year 246
of the general reassessment, prior to January first of any 247
year. No county or city not within a county shall exercise 248
this opt-out provision after implementing the provisions of 249
this section and sections 137.073, 138.060, and 138.100 as 250
enacted by house bill no. 1150 of the ninety -first general 251
assembly, second regular session and se ction 137.073 as 252
modified by house committee substitute for senate substitute 253
for senate committee substitute for senate bill no. 960, 254
ninety-second general assembly, second regular session, in a 255
year of general reassessment. For the purposes of apply ing 256
the provisions of this subsection, a political subdivision 257
contained within two or more counties where at least one of 258
such counties has opted out and at least one of such 259
counties has not opted out shall calculate a single tax rate 260
as in effect prior to the enactment of house bill no. 1150 261
of the ninety-first general assembly, second regular 262
session. A governing body of a city not within a county or 263
a county that has opted out under the provisions of this 264
subsection may choose to implement th e provisions of this 265
section and sections 137.073, 138.060, and 138.100 as 266
enacted by house bill no. 1150 of the ninety -first general 267
assembly, second regular session, and section 137.073 as 268
modified by house committee substitute for senate substitute 269
for senate committee substitute for senate bill no. 960, 270
ninety-second general assembly, second regular session, for 271 SB 786 10
the next year of general reassessment, by an affirmative 272
vote of the governing body prior to December thirty -first of 273
any year. 274
15. The governing body of any city of the third 275
classification with more than twenty -six thousand three 276
hundred but fewer than twenty -six thousand seven hundred 277
inhabitants located in any county that has exercised its 278
authority to opt out under subsect ion 14 of this section may 279
levy separate and differing tax rates for real and personal 280
property only if such city bills and collects its own 281
property taxes or satisfies the entire cost of the billing 282
and collection of such separate and differing tax ra tes. 283
Such separate and differing rates shall not exceed such 284
city's tax rate ceiling. 285
16. Any portion of real property that is available as 286
reserve for strip, surface, or coal mining for minerals for 287
purposes of excavation for future use or sale to others that 288
has not been bonded and permitted under chapter 444 shall be 289
assessed based upon how the real property is currently being 290
used. Any information provided to a county assessor, state 291
tax commission, state agency, or political subdivision 292
responsible for the administration of tax policies shall, in 293
the performance of its duties, make available all books, 294
records, and information requested, except such books, 295
records, and information as are by law declared confidential 296
in nature, including individually identifiable information 297
regarding a specific taxpayer or taxpayer's mine property. 298
For purposes of this subsection, "mine property" shall mean 299
all real property that is in use or readily available as a 300
reserve for strip, surface, or coal mining for minerals for 301
purposes of excavation for current or future use or sale to 302
others that has been bonded and permitted under chapter 444. 303 SB 786 11
137.132. 1. For the purposes of this section, and in 1
any appeal alleging a violat ion 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 valu es 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 pu rsuant 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 e qual throughout each 17
subclass. If the common level of assessment in either 18
subclass is lower than the individual level of 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 t he 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 SB 786 12
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 form 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
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 val uation. At any hearing before the 30
state tax commission or a court of competent jurisdiction of 31
an appeal of assessment from a first class charter county or 32 SB 786 13
a city not within a county, the assessor shall not advocate 33
nor present evidence advocating a v aluation 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 ord ers of the board, and the assessor 39
shall correct all erroneous assessments, and the clerk shall 40
adjust the tax book according 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 eac h 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 any 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
138.135. 1. Notwithstanding any other provision of 1
law to the contrary, the county assessor of any county of 2
the first classification with a population of at least nine 3
hundred thousand inhabitants shall not be a member of the 4
county board of equalization. 5
2. In any county of the first classification with a 6
population of at least nine hundred thousand inhabitants, 7
when there is an order of the board of equalization or the 8
state tax commission, including a settlement order, relating 9
to the assessment of property, the assessment shall remain 10
the same for the subsequent even -numbered year unless there 11
has been new construction or property improvements between 12
January first of the odd -numbered year and January first of 13
the following even-numbered year. However, in the event of 14
a transfer of ownership of real property on or after January 15
first of an even-numbered year, the new owner shall be 16
entitled to appeal the assessed value directly to the state 17 SB 786 14
tax commission by no later than December thirty -first of the 18
same year, even if the prior owner appealed the value in the 19
previous odd-numbered year and the appeal resulted in an 20
order of the board of equalization or state tax commission. 21
In any such appeal by a new own er, the state tax commission 22
shall have authority to lower the assessed value for the 23
even-numbered year. 24
3. In any county of the first classification with a 25
population of at least nine hundred thousand inhabitants, 26
when a hearing is conducted by the board of equalization 27
pursuant to this chapter, if the property owner requests to 28
be heard by a majority of the board of equalization, and a 29
majority of the board of equalization is not in attendance 30
for any reason, the position of the property ow ner shall 31
prevail without further action. 32
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
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 SB 786 15
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 delinquen cy 7
date and file with the collector before the delinquency date 8
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 befor e 21
the delinquency date, the collector shall disburse to the 22 SB 786 16
proper official all portions of taxes not protested or not 23
disputed by the taxpayer and shall impound in a separate 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 action 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
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 f or nonjury civil 53
proceedings, and, after determination of the issues, the 54 SB 786 17
court shall make such orders as may be just and equitable to 55
refund to the taxpayer all or any part 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 taxpayer, 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
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 r efunds 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 receive 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 invest ment of state moneys. 85
A taxpayer who is entitled to a refund of protested or 86 SB 786 18
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 prot est 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 particular 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 dis pute. Any taxing authority 103
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 matte r for 116
further proceedings, if any, to compel restitution of such 117
tax funds to the taxpayer. In the event that any protested 118 SB 786 19
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
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 circui t 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 refund 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 of last review modifying that 146
determination shall be binding on the parties, and th e 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 interest on 150 SB 786 20
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 de termination 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 interest on the refund at the rate 159
established by the director of revenue under sectio n 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 section. 163