Missouri SB 85: Modifies provisions relating to the assessment of property

Bill Text

FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
SENATE BILL NO. 85
103RD GENERAL ASSEMBLY
1166S.03C KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 137.076, 137.180, and 137.355, RSMo, and to enact in lieu thereof three new
sections relating to the assessment of property.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 137.076, 137.180, and 137.355, RSMo, 1
are repealed and three new sections enacted in lieu thereof, to 2
be known as sections 137.076, 137.180, and 137.355, to read as 3
follows:4
137.076. 1. In establishing the value of a parcel of 1
real property the county assessor shall consider current 2
market conditions and previous decisions of the county board 3
of equalization, the state tax commission or a court of 4
competent jurisdiction that affected the value of such 5
parcel. For purposes of this section, the term "current 6
market conditions", shall include the impact upon the 7
housing market of foreclosures and bank sales. 8
2. In establishing the value of a parcel of real 9
property, the county assessor shall use an income-based 10
approach for assessment of parcels of real property with 11
federal or state imposed restrictions in regard to rent 12
limitations, operations requirements, or any other 13
restrictions imposed upon the property in connection with: 14

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(1) The property being eligible for any income tax 15
credits under Section 42 of the Internal Revenue Code of 16
1986, as amended; 17
(2) Property constructed with the use of the United 18
States Department of Housing and Urban Development HOME 19
investment partnerships program; 20
(3) Property constructed with the use of incentives 21
provided by the United States Department of Agriculture 22
Rural Development; or 23
(4) Property receiving any other state or federal 24
subsidies provided with respect to use of the property for 25
housing purposes. 26
For the purposes of this subsection, the term "income-based 27
approach" shall include the use of direct capitalization 28
methodology and computed by dividing the net operating 29
income of the parcel of property by an appropriate 30
capitalization rate not to exceed the average of the current 31
market data available in the county of said parcel of 32
property. Federal and state tax credits or other subsidies 33
shall not be used when calculating the capitalization rate. 34
Upon expiration of a land use restriction agreement, such 35
parcel of property shall no longer be subject to this 36
subsection. 37
3. (1) Notwithstanding any provision of law to the 38
contrary, an assessor shall not use any computer program to 39
make a final determination of the true value in money of any 40
real or personal property if such computer program 41
determines that the true value in money of such property has 42
increased by more than four percent since the most recent 43
assessment. In any such case, the assessor shall only 44
assign a final true value in money of such property after 45

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the property has been evaluated in person by personnel who 46
are knowledgeable and experienced with appraisal practices 47
in the county in which the property is located. 48
(2) The provisions of this subsection shall not be 49
construed to exempt any property subject to this subsection 50
from the provisions of subsection 1 of section 137.115 in 51
any hearing or appeal. 52
(3) For the purposes of this subsection, the term 53
"computer program" shall mean any computer, computer- 54
assisted mass appraisal system, or any other program that 55
utilizes mathematical techniques or artificial intelligence 56
to estimate property values. 57
137.180. 1. Whenever any assessor shall increase the 1
valuation of any real property he shall forthwith notify the 2
record owner of such increase, either in person, or by mail 3
directed to the last known address; every such increase in 4
assessed valuation made by the assessor shall be subject to 5
review by the county board of equalization whereat the 6
landowner shall be entitled to be heard, and the notice to 7
the landowner shall so state. 8
2. Effective January 1, 2009, for all counties with a 9
charter form of government, other than any county adopting a 10
charter form of government after January 1, 2008, whenever 11
any assessor shall increase the valuation of any real 12
property, he or she shall forthwith notify the record owner 13
on or before June fifteenth of such increase and, in a year 14
of general reassessment, the county shall notify the record 15
owner of the projected tax liability likely to result from 16
such an increase, either in person, or by mail directed to 17
the last known address; every such increase in assessed 18
valuation made by the assessor shall be subject to review by 19
the county board of equalization whereat the landowner shall 20

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be entitled to be heard, and the notice to the landowner 21
shall so state. Notice of the projected tax liabili