State Tax Commission Definitions

Ad Valorem Tax – Ad Valorem taxes are taxes that are based on the value of property. These are commonly known as property taxes.

Agricultural/Horticultural Land Grades – Agricultural/Horticultural Land is divided into eight grades based on its productive use value. Grade 1 is the best land, grade 8 is the poorest. 12 CSR 30-4.010

Appraised Value – The appraised value is an estimation of the true value in money of residential, commercial or utility property, or the productive or market value of agricultural property.

Assessed Value – The assessed value is the portion of the true value in money on which taxes are based. In Missouri, the assessed value of property may not exceed 33.3 percent of its true value in money. For real property, residential property is assessed at 19 percent of its true value in money; agricultural/horticultural property is assessed at 12 percent of its productive or market value; and all other property is assessed at 32 percent of its true value in money. Most personal property is assessed at 33.3 percent of its true value in money.

Assessment Date or Tax Date – January 1st of each year. Real property is assessed as of January 1st of each odd-numbered year. That same value will be used for the following even-numbered year, unless there has been new construction and improvement to the property. Personal property is assessed as of January 1st of each year.

In counties that adopt the Occupancy Law, newly constructed residential real property may be assessed for a portion of the year on a pro-rata basis, commencing upon the day the home is occupied. For example, if a family moves into a new home on April 1, the assessor assesses the home and the owner is taxed on 75% (eight of twelve months) of the value of the real estate for that year.

Assessor – The county official charged with determining the market value and classification of property for tax purposes.

Assessment Jurisdiction – The assessment jurisdiction is the county in which the subject property is located. The City of St. Louis is a separate assessment jurisdiction.

Board of Equalization – This board hears taxpayer complaints, reviews the assessments, and issues decisions either affirming or adjusting the assessments returned by the assessor. The City of St. Louis also has a Board of Merchants’ and Manufacturers’ Tax Equalization which performs the same equalization duties as the Board of Equalization for manufacturers’ assessments. Any reference to the county Board of Equalization in this web page shall also encompass the City of St. Louis Board of Merchants’ and Manufacturers’ Tax Equalization.

Classification– For property tax purposes, property is divided into three classes: (1) real property; (2) tangible personal property; and (3) intangible personal property. Real property is subclassified as (1) residential, (2) agricultural/horticultural, and (3) utility, industrial, commercial, railroad, and all other. Property must be assessed uniformly within its own class or subclass.

Commission – The State Tax Commission of Missouri. There are three individuals appointed by the Governor to serve as Commissioners.

Complainant – The Complainant is the taxpayer or his representative bringing an appeal before the Commission.

Complaint For Review Of Assessment – The form on which the taxpayer files an appeal to the Commission. It is the pleading to begin the process

Evidentiary Hearing – The trial of an appeal. The time when both parties present evidence to support their position in the case being heard. The taxpayer’s day in court.

Improvements – Improvements are buildings, additions to buildings, sidewalks, parking lots, wells and other permanently attached additions to land which, under the two year assessment cycle, may either increase or decrease the value of the property.

Intangible Personal Property – Intangible personal property includes such things as stocks, bonds, notes, and patents.

Personal Property – Tangible property that is not real property. This includes automobiles, trucks, farm implements, boats, office equipment, machinery and equipment.

Prehearing Conference – An informal meeting between the parties and a Hearing Officer to discuss the issues in a case.

Productive Use Value – The value which land has for agricultural/horticultural use. The value is established by the Agricultural/Horticultural Land Grades.

Real Property – Real property includes the land itself and all growing crops, buildings, structures, improvements and fixtures on the land. It also includes all rights and privileges belonging or related to the land.

Respondent – The Respondent is the assessor of the county where the property was assessed. In the City of St. Louis, the Respondent is the assessor of the City of St. Louis.

Settlement – An agreement reached through negotiation by the Complainant and Respondent in a tax appeal.

Subject Property – The subject property is the property under appeal.

Subject Tax Day – The subject tax day is January 1st of the year in which the disputed assessments were made.

Tangible Personal Property – Tangible personal property includes such things as automobiles, farm implements and boats which are movable and are not permanently attached to the land.

Transcript – A written record of the testimony at the Evidentiary Hearing.

True Value in Money – The true value in money is the price the property would bring after a reasonable exposure to the open market when offered for sale by a person who is willing but not obligated to sell it, and is bought by a person who is willing to purchase it but who is not forced to do so. The fair market value of the property. The true value in money of agricultural/horticultural land in actual use is defined as its productive use value. The true value in money of agricultural or horticultural land that is vacant and unused is its fair market value.

Witness – An individual who is called to testify at the Evidentiary Hearing.