State Auditor’s Preliminary Report, AG files suit against the county and next steps for taxpayers PLUS end of the year happenings at the county
On Monday December18th Missouri Auditor Scott Fitzpatrick released a news breaking preliminary report confirming that the 2023 Jackson County assessments violated state law. It has been found that a majority of taxpayers did not receive property assessment notices in a timely manner before June 10th 2023. Additionally, a majority of parcels that saw a value increase of more than 15% should be deemed invalid. The very next day Missouri Attorney General Andrew Bailey filed criminal suit against Jackson County in light of erroneous assessments. Due to these announcements the Missouri State Tax Commission has agreed to unprecedently take appeal requests for Jackson County taxpayers that experienced either a late notice or a high increase in 2023. It is unanimous at the state level that the assessment process needs to be addressed. This is a huge win for homeowners in Jackson County, but the deadline to file an appeal request with the STC is DECEMBER 31ST 2023! Our office advises contacting the STC immediately and requesting an appeal.
Jackson County taxpayers who received their property notice after June 10th OR who saw property value increases over 15% can now request an appeal directly to the Missouri STC without an appeal at the county level. Here is the link to instructions and the STC application. The deadline is December 31st!
Jackson County Legislator Sean Smith agrees this is a huge win for Jackson County property owners. He believes this week’s announcements should require a Special Meeting for the Jackson County Legislature immediately. At this time, Chairman DaRon McGee has made no such announcement. “I have supported multiple efforts in addressing the assessments this year including initiatives urging the Board of Equalization to put a 14.9% cap on the assessments or rolling back to 2022 rates, all to no avail. It is the responsibility of this Legislature to take immediate action and actively respond to the state’s findings,” Smith says.
Here is an instructional video on how to file with the Missouri STC, shared from Humphrey, Farrington & McClain Law Firm.
Here are some Q & A discussions we’ve seen on this topic:
Q: What if a taxpayer did go through the appeals process at the county and reached a stipulation agreement?
A: Even if the stipulation agreement reflects more than a 15% increase, cases that appealed to the county and reached a stipulation agreement are considered ‘Closed’ and do not qualify to go to the STC.
Q: Do I need to Pay Under Protest?
A: We understand the State Auditor encourages Paying Under Protest. This is only applicable for taxpayers that have an active appeal that is unresolved at the county. Note that to complete the Paying Under Protest process the taxpayer must also file a civil lawsuit with the county within 90 days of sending the protest letter. If you need a template for the Pay Under Protest option you can email Sean Smith at SESmith@jacksongov.org.
Q: Can I only send in the Pay Under Protest letter, and choose not to file suit?
A: Yes, the auditor also encourages only sending the protest letter. This does not complete Paying Under Protest per state law but it still provides documentation for the ongoing investigations. Pay Under Protest letters need to be received by the county before December 31st.
Q: Where can I find more information to learn about Paying Under Protest?
A: Here is a link provided by the STC with more information regarding Paying Under Protest as well as filing an appeal dispute directly with them. This was put together specifically for Jackson County as they are accepting appeals in this unique situation, even if the taxpayer does not have an appeal filed with the county.
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The Missouri Legislature is also showing enthusiasm about addressing faulty property assessments in Jackson County. Representative Jeff Coleman filed both HJR78 and HJR79 on December 1st, both addressing property assessments. HJR78 would mandate that property assessments cannot increase more than 2% or must be valued at the same value of the most recent purchase price, whichever is lower. HJR79 mandates that all county assessors in Missouri must be elected into the position. Currently only Jackson County and St. Louis county assessors are appointed positions.
The Missouri Supreme Court dismissed the citizens’ case this week but it is important to note that this was not because of case merit. Rather the court held that the plaintiffs need to go through all of the proper channels first before filing suit. Additionally, the court also agreed that the county’s assessment processes violated state law. Humphrey, Farrinton & McClain Law Firm comments on this in their instructional video.
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On Monday December 18th the Legislature voted to hold Ordinance 5822, authorizing the ballot question of whether or not to continue the 3/8th of 1% sales tax countywide for the purpose of retaining the Kansas City Royals and Kansas City Chiefs in Jackson County. This vote has been delayed by the legislature for now. Sean Smith sees this is a positive thing for Jackson County as there are still many unknowns about the deal in general, and many negotiations that need to be had. He insists that he won’t agree to anything that isn’t a good deal for Jackson County taxpayers. Should the Legislature vote to put this on the ballot, voters could have an opportunity to vote on the matter as soon as April 2024.
The next meeting for the Jackson County Legislature will be held on Friday December 29th at 10am. County legislators will have the final vote and approve the Jackson County budget for 2024. Sean was recently assigned to the Budget Committee and has been working closely with county leadership to make budget amendments. The Legislature will also finalize distribution for 2024 ARPA funds.
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