LISC KC Provides Counsel to Jackson County Residents Following Property Tax Assessments

Residents in Jackson County saw a dramatic increase in property taxes this year; some as high as 200 percent. Although the appeal application period has passed, there are opportunities to revisit tax assessments ahead of the December 31 tax due date.

Property tax assessments are conducted every two years for homeowners. The role of these assessments is to adjust the property market value and determine the total amount of tax due on the property. The assessment also provides tax exemptions for those who qualify.

Jackson County has prioritized raising values to what it deems fair. However, the varying assessment rates are raising concerns.

Homes that have not been renovated or upgraded have also seen an unpredictable increase. The lack of available housing is driving up the stock of the housing market, enhancing gentrification, stunting growth for residents and driving people out of their homes.

Manuel Abarca IV, Jackson County legislator, said, “The tax increases are forcing homeowners to resort to rental properties, and developers are coming in from out of town to purchase and upgrade the properties. This issue further causes a ripple effect, dramatically increasing market value.”

Institutional investors are companies that purchase homes and renovate them. These buyers are a prime example of the dangerous outcomes of taxation because the upgraded homes further increase property value in surrounding areas. This problem exacerbates other issues, including a lack of available and affordable housing and living assistance.

Senior citizens are getting hit especially hard because many have fixed incomes. While property values have climbed, social security benefits and pension annuities are not increasing at the same rate, potentially causing a rise in housing displacement. This issue further widens the gap for people with fixed incomes to afford housing.

“Opportunity exists for senior citizens with SB190, a bill that authorizes a county to grant a property tax credit to eligible taxpayers,” Abarca said.

To be eligible for the SB190 Bill, senior citizens must have Social Security benefits, own the property or have a legal or equitable interest, and be liable for paying the property taxes.

“Other homeowners facing displacement can appeal to the Missouri State Tax Commission. However, this process is never successful as the initial step. Taxpayers must have exhausted all other options, including the local appeal,” Abarca said.

Local legislators voted 7-0 to eliminate the 2023 assessments and utilize the Hancock Amendment, an article that caps the 2019 market value increases at 15 percent. However, part of the problem is that the legislators do not have the capability to enforce the amendment.

“The state has to relinquish power to allow local legislators to fix the problems. County legislators presently have no jurisdiction to offer relief to its residents,” Abarca said.

The Jackson County assessor’s office now faces a class-action lawsuit to overturn the tax increases following the inconsistencies. Many residents also claim they did not receive a timely assessment notice.

“Local government leaders must address taxation at the upcoming election,” Abarca said.