Assessment is the process of placing value on a property for the purpose of property taxation. Reassessment is an update of all real property assessments in the City, conducted by the Assessor to equalize values among taxpayers and to adjust values to current market conditions.
Reassessed values of real estate are placed on the tax rolls by the Assessor every odd-numbered year (2011, 2013, etc.). Personal property is assessed every year.
For most real estate owners, nothing. However, if new construction, rehabilitation or renovation have taken place, the property's market value is adjusted to reflect the added value of the new construction. If some type of destruction occurs such as fire or flood the value is then adjusted to reflect the decrease in value. The total value is based upon the market conditions as of January 1 of the preceding year.
Three types of property:
No. Some personal property is exempt, including household goods, inventories for sale, wearing apparel and items of personal use and adornment. For most people, a car is the only taxable item of personal property in Missouri. Exempt real estate includes property owned by governments, and property used as non-profit cemeteries, exclusively for religious worship, for schools and colleges, and for purely charitable purposes. However, exemption is not automatic, and it is the responsibility of the property owner to show the property should be exempt from ad valorem taxes.
Under Missouri's Constitution, all assessments for property tax purposes must be based upon market value and be uniform within the same class or subclass of property.
Over time, the value of property may change, depending upon its nature, location, and other factors. Some values change more rapidly than others. Reassessment is the only way to be sure that the taxpayer is being taxed fairly, and is taxed the same as other comparable property.
The City Assessor is primarily responsible for assessing property within the City. However, the Assessor's work is subject to review by the City's Board of Equalization and the State Tax Commission. The State Tax Commission is the state agency charged with general supervision of assessors and with enforcing property tax laws.
Market value, true value in money and appraised value have the same meaning under Missouri law. A simple definition of market value is the price the property would bring when offered for sale by a person who is willing but not obligated to sell it, and is bought by a person who is willing to purchase it but who is not forced to do so.
Once the estimate of market value has been determined, the Assessor calculates a percentage of that value to arrive at assessed value. The percentage is based on the classification, determined by the type of property or how it is used. The percentages are:
| Real Estate | Personal |
|---|---|
| Residential 19% | Cars, Boats, Other 33 1/3% |
| Agricultural 12% * | Farm Equip., Livestock 12% |
| Commercial & All Other 32% | Historic Autos 5% |
| Grain 1/2% |
* There is no Agricultural real estate in the City of St. Louis.
Missouri statutes define the three subclass of real estate:
Subclass 1- Residential property, all real property improved by a structure which is used or intended to be used for residential living by human occupants, vacant land in connection with an airport, land used as a golf course, and manufactured home parks, bed and breakfast inns in which the owner resides and uses as a primary residence with six or fewer rooms for rent, and time-share units as defined in section 407.600, except to the extent such units are actually rented and subject to sales tax under subdivision (6) of subsection 1 of section 144.020, but residential property shall not include other similar facilities used primarily for transient housing. For the purposes of this section, "transient housing" means all rooms available for rent or lease for which the receipts from the rent or lease of such rooms are subject to state sales tax pursuant to subdivision (6) of subsection 1 of section 144.020;
Subclass 2- Agricultural and Horticultural property is that which is actively used for those purposes. The value of this land is established by its productivity, based on soil productivity guidelines set by the State Tax Commission. It is not based on market value. However, when the highest and best use of land is considered to be agricultural, and it is not actively farmed, it is assessed according to market value and not by productivity guidelines.
Subclass 3- Utility, industrial, commercial and railroad property, and any other real estate that does not fit either of the other two classes. Includes mines, stores, factories and property of non profit corporations.
The Assessor sends out blank assessment forms early each year. It is your responsibility to send a completed form to the Assessor by April 1, listing all taxable personal property you owned on January 1. If your form is late, the penalty is twenty-five (25) percent of the total assessed value. The Assessor may contact you to follow up if the form is not complete.
A number of methods are used. The Assessor's staff looks at new construction that has taken place, sales prices of comparable property located nearby, the condition of your property, and any other factors that can help place an accurate value on the property.
Three techniques are available:
All values are likely to change, but not all will change to the same extent. Market values increase more in some neighborhoods than in others. A major purpose of reassessment is to make sure that the new values reflect all changes that have occurred.
Over time market value changes even if no improvements are made to the property. Many people sell their homes for much more than they paid for them years earlier. The statutes require that property be periodically reassessed to maintain realistic market values and treat all taxpayers fairly. We often get calls at bill time where taxpayers do not understand a raise in the tax amount. In many cases the assessed amount has not changed but the tax rate has making the tax amount due higher than the previous year.
The Assessor is required by the statutes to notify the owner of record of any increase in the valuation of real property and personal property.
(The following information applies to the Change of Assessment Notices mailed out in May 2023)
By state law, all property must be reassessed every two years. The State Tax Commission oversees the local reassessment process and is charged with the task of assuring that assessments reflect changes in market values.
Tax revenue increases due to reassessment are limited under state law. Your new assessment notice will include an estimate of the 2023 taxes on your property. The actual tax rates will be set by the taxing authorities later this year.
The Missouri Property Tax Credit Claim gives credit to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes or rent they have paid for the year.
If you think you may qualify, call St. Louis Area Agency on Aging at (314) 612-5918 for more information.
If you have any questions concerning the appraised value of your property, please call:
After you receive your new assessment notice in May, there are three steps you can take in the appeal process if you do not agree with your assessment. Remember that an assessment is based on current market value and our objective here is to establish the correct market value of the property. Stating that property taxes are too high is not relevant testimony. You should determine what you believe to be the value of your property and gather and present evidence that supports that value. Such evidence could include photographs, the recent sale of your property, or the oral testimony of someone who has done a recent appraisal of your property.
All meetings must be completed prior to July 1st.
During an informal meeting with the Assessor or one of the staff , you can learn how your assessment was made, what factors were considered, and what type of records pertain to your property. Many disagreements are taken care of at this level. Notices are mailed in May of each reassessment year.
If not satisfied after the informal meeting, you may appeal to the Board of Equalization. Forms for appeal to the Board of Equalization must be requested in person or by writing to:
Board of Equalization
Room 120
City Hall
St. Louis MO 63103
Your appeal must be placed with the Assessor's Office by the second Monday in July. The board will conduct hearings by appointment beginning the first Monday in July through the fourth Saturday in August. The board will hear evidence from the Assessor and you regarding the value of the property which is the subject of the appeal. You do not have to appear in person before the Board of Equalization. You have the option of signing a waiver of attendance, and the Board will consider any evidence you return in-lieu of your attending a hearing.
You have a right to appeal to the State Tax Commission by September 30 or within 30 days of receiving the decision of the St. Louis City Board of Equalization. An appeal must first be made to the Board of Equalization before the State Tax Commission may hear the appeal.
For more information on appeals to the State Tax Commission call 573-751-2414 or write to:State Tax Commission
PO Box 146
Rm. 840 - Harry S Truman Building
301 West High St.
Jefferson City, MO. 65102