Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule establishes the method assessors
shall use to determine assessed value of real property under the two-year
assessment cycle.
(1) The
assessed value of real property shall be calculated by determining its true
value in money on January 1 of each odd-numbered year. The value shall remain
the same for the subsequent even-numbered year unless there has been new
construction or property improvements between January 1 of the odd-numbered
year and January 1 of the following even-numbered year.
(2) In those instances in which new
construction or property improvements have occurred between January 1 of an
odd-numbered year and January 1 of an even-numbered year, the true value in
money of the property as newly constructed or improved shall be determined as
of January 1 of the odd-numbered year.
(A) The
valuation of the property shall take into consideration the new construction or
property improvements and shall assign to that new construction or property
improvements the value which would have been attributed to new construction or
improvements on January 1 of the odd-numbered year as though they had existed
on that date.
(B) Examples.
1. On January 1, 1991, the subject property
is a five (5)-acre vacant lot. On December 1, 1991, construction of a strip
shopping center is completed. For the 1992 tax year, the assessed value is
calculated by determining the true value in money of a shopping center of the
same size, construction, location and use as the subject property as of January
1, 1991, and multiplying that amount by the appropriate statutory assessed
value percentage.
2. On January 1,
1991, the subject property is a three (3)-bedroom ranch style house with
thirteen hundred (1,300) square feet. On August 1, 1991, the addition of a
second story and seven hundred (700) square feet is completed. For the 1992 tax
year, the assessed value is calculated by determining the true value in money
of a two (2)-story, two-thousand (2,000) square foot residence of the same
construction and location as the subject as of January 1, 1991, and multiplying
that amount by the appropriate statutory assessed value percentage.
(3) A property
improvement consists of any change to the physical characteristics of the
property, whether that change is one that causes an increase or a reduction in
value. Changes in zoning, neighborhood conditions or economic conditions which
directly or indirectly affect the property will not warrant a change in the
assessed value for the even-numbered year.
(A) Examples.
1. Assuming value is affected, a change in
the assessed value for the 1992 tax year is warranted (see paragraph
(2)(B)2.)
2. On January 1, 1991,
the subject property is a three (3)-bedroom ranch style house with thirteen
hundred (1,300) square feet. On December 1, 1991, the house burns to the
ground. A change in the assessed value for the 1992 tax year is
warranted.
3. On January 1, 1991,
the subject property is a five (5)-acre vacant lot zoned agricultural. On
December 1, 1991, the property is rezoned commercial. No new construction is
added to the property. A change in the assessed value for the 1992 tax year is
not warranted.
4. On January 1,
1991, the subject property is a three (3)-bedroom ranch style house located on
ten (10) acres of land in the rural area of the county. On December 1, 1991,
the county began operation of a landfill on property adjacent to the subject
property. The location and operation of the landfill negatively affect the
value of the subject property. A change in the value for the 1992 tax year is
not warranted.
5. On January 1,
1991, the subject property is a three (3)-bedroom ranch style house with
thirteen hundred (1,300) square feet which is twenty (20) years old. On January
1, 1992, the subject property is twenty-one (21) years old. It is generally
recognized in the appraisal of property that as property ages it physically
deteriorates and it may be necessary to make a deduction for physical
depreciation under the cost approach for value. A change in value for the 1992
tax year is not warranted.
(4) The examples used in this rule are by way
of illustration only and not to be deemed to be the only instances to which
this rule applies.
*Original authority: 137.115, RSMo 1939, amended 1945,
1951, 1959, 1972, 1973, 1981, 1983, 1985, 1985, 1986, 1987, 1989, 1990, 1991,
1992 and 138.320, RSMo 1939, amended
1945.
