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Details on the further course of the property tax crisis in Jackson County


Details on the further course of the property tax crisis in Jackson County

KANSAS CITY, Missouri (KCTV) – Days have passed since the Missouri State Tax Commission (STC) put a literal halt on Jackson County’s property tax assessment, but they appear no closer to reaching an agreement with the county.

The STC ordered the county to correct the assessment for 2023 and ordered that the increases in value for 2023 and 2024 be capped at 15%.

Many taxpayers who were faced with unexpected and shockingly high tax bills see the order as a relief.

The district administration has announced that it will take action against the order, saying it is politically motivated. District Manager Frank White and Evaluation Director Gail McCann Beatty declined to give personal interviews and only commented in press releases.

But not everyone in the district agrees with the fight against the order.

On Thursday, several Jackson County lawmakers held a press conference pledging their support for the STC and the order.

Jackson County deputies, including Manny Abarca (second from right), held a press conference...
Jackson County Deputies, including Manny Abarca (second from right), held a press conference on Thursday, August 8, 2024, regarding the latest developments in property tax assessment issues in Jackson County.(KCTV5)

“The administration has issued press releases saying, ‘Jackson County unequivocally opposes the State Tax Commission,'” said Jackson County Assemblyman Sean Smith. “Well, let’s be honest. As a legislative body, we are part of Jackson County. They’ve done this again without consulting us.”

The Legislature meets every Monday. Smith said he would introduce a bill that would prohibit district attorneys from using taxpayer money to challenge the order.

“The reality is we all need to focus on fixing the problem now,” Smith said.

For now, the tax commission’s order is the only “solution.” The lawsuit filed by Missouri Attorney General Andrew Bailey and the STC — which was pending in Jackson County — was dismissed following the STC’s order at Bailey’s request.

Bailey argued that the commission’s order achieved the same goal as the lawsuit.

Two lawyers speak out

To say that the events of the last year in Jackson County have been unusual would be an understatement.

“None of us who work in this field have ever seen an order like this,” said Bob Murphy, a tax attorney and former Jackson County tax assessor. “There have been cases in recent history where the state tax commission has ordered a county, almost always a rural county, to increase its tax assessments. No one has ever seen an order like this.”

He also told us that the county’s vow to take action against the STC was unprecedented.

“I am not aware of any county tax authority that has ever thought that the instructions of the state tax commission were optional anywhere in Missouri,” Murphy said.

Another attorney KCTV spoke to said the county may be fighting a losing battle if it defies the order.

“As far as authority goes, I think the law is pretty clear that the state tax commission has the authority to issue these kinds of orders,” said Jonathan Soper, the original attorney in a class action lawsuit filed over the 2023 tax assessment.

Soper said that ultimately it is the taxpayers who are the losers in this fight.

“The owners don’t care about politics here,” Soper said. “They just don’t want to have to pay unjust and illegal taxes. So I’m not really concerned about politics, I’m concerned about helping people get a fair tax bill.”

Does politics play a role?

Jackson County openly rejects the STC’s order, calling it “inaccurate and dangerously politicized.”

Many speculate that this new chain of events occurred because Bailey was scheduled to testify about conversations he had had in connection with the trial.

Since the lawsuit was dismissed, no witnesses will be heard.

KCTV5 reached out to Bailey’s spokeswoman Madeline Sieren about the allegations. She avoided the direct question but did provide an answer regarding the order.

“Continuing the lawsuit could have jeopardized the much-needed relief offered in the Tax Commission’s order and would have been counterproductive to Jackson County taxpayers,” Sieren wrote.

The dismissal of the lawsuit means Tyler Technologies no longer faces potential financial damages. The company received $17.9 million in taxpayer money to conduct a competent assessment.

The head of the assessment, Gail McCann Beatty, is also spared a comprehensive questioning under oath.

KCTV5 also pressed for answers from the state tax commission. Why get involved in litigation when an order is always an option and the ultimate answer? We received this statement:

The Commission reached its decision to issue an order after reviewing a significant amount of information it had gathered over the past several months, including county tax records and affidavits from county officials obtained through evidence in its lawsuit against Jackson County.

Balance sheet 2023 – Was it that bad?

Nearly 55,000 appeals were filed in Jackson County, a record.

The State Auditor is still reviewing the entire assessment process.

In December, the auditor uncovered problems with the physical inspections and required reporting required by the state.

There were efforts to cap property taxes at 15% before taxpayers even paid a bill. That never happened.

KCTV5 has documented the concerns of homeowners faced with shocking new assessments. Many question the quality of the work that led to higher property tax bills. Homeowners brought up example after example of sloppy assessment.

KCTV5 uncovered a data error, the county later admitted it was indeed an error.

Numerous municipalities sued Jackson County on the grounds that they could not set appropriate taxes due to the problematic assessment.

Jackson County maintained that any individual property owner could appeal an incorrect value.

But the appeals process was also plagued by problems, with homeowners reporting feeling pressured by hearing officers and confusion over appointments.

Jackson County’s problematic tax assessment made more headlines in 2023 than any other topic: “Tax Assessment Problems.”

What is it about?

Jackson County press releases point out that schools have a lot to lose if the assessment rate is capped at 15%.

The money from last year’s property tax bills has been collected and distributed. Schools have spent the money or have already allocated those funds for the upcoming school year.

READ MORE: “Devastating”: What the withdrawal of property tax assessments could mean for schools

On the other hand, homeowners claim the process was unfair and the county must follow the law. Lawyers call what happened to the homeowners shameful.

“It breaks my heart that so many homeowners have had to sell their homes, they have had to sell their properties because of the faulty appraisal,” said Stacey Johnson Cosby. “And there’s no going back from that. What do they do?”

Homeowners wonder how quickly they will get their money back or how quickly their mortgages can be adjusted.

“If it passes, it will help me and certainly many other residents of the city a lot. But I know that Frank White and the county will fight it with all their might,” said Tim Bullock.

Lawmakers and lawyers unanimously warn that the process is likely to drag on and that there is no large pot of money available for repayments.

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