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CHAPTER I – ADMINISTRATION

1.0 INTRODUCTION
1.1 HISTORY OF THE STATE TAX COMMISSION
1.2 FUNCTIONS OF THE STATE TAX COMMISSION

  1. SUPERVISION OF ASSESSMENT PRACTICES
  2. ASSESSMENT APPEALS
  3. ORIGINAL ASSESSMENT
  4. INTER-COUNTY EQUALIZATION
  5. MISCELLANEOUS FUNCTIONS

CHAPTER II – GENERAL INFORMATION

2.0 HISTORY OF REASSESSMENT
2.1 TAX DAY
2.2 CLASSIFICATION OF PROPERTY

  1. CLASSES
    1. REAL PROPERTY
      1. DEFINITIONS
      2. SUBCLASSES
    2. PERSONAL PROPERTY
    3. PROBLEM AREAS IN CLASSIFYING PROPERTY
      1. FIXTURES
      2. SPLIT USE
      3. FOREST LAND
      4. MINING PROPERTY

2.3 PERSONAL PROPERTY

  1. PERSONAL PROPERTY LISTS AND PENALTIES
    1. ALL COUNTIES EXCEPT CITY OF ST. LOUIS
    2. CITY OF ST. LOUIS
  2. WHERE TO TAX PERSONAL PROPERTY
    1. INTRODUCTION
    2. NATURAL PERSONS
    3. CORPORATIONS OR PARTNERSHIPS
    4. NON-MISSOURI RESIDENTS
    5. MILITARY PERSONNEL
    6. SUMMARY
  3. TAXATION OF INSTRUMENTALITIES OF INTERSTATE COMMERCE
    1. TAXABILITY
    2. TRUCKS INVOLVED IN INTERSTATE COMMERCE
      1. ASSESSMENT PROCEDURE
        1. IDENTIFYING TRUCKS
      2. ASSESSMENT AND APPORTIONMENT
      3. BOATS AND BARGES
      4. AIRCRAFT
      5. BUSINESS PERSONAL PROPERTY
        1. PROCEDURE FOR ASSESSING BUSINESS PERSONAL PROPERTY
        2. DETERMINING RECOVERY PERIODS
          1. LIST OF BPP GROUPS BY RECOVERY PERIOD
          2. ALPHABETICAL LISTING OF BPP GROUPS

2.4 EXEMPTIONS OVERVIEW OF EXEMPTION LAWS IN THE STATE OF MISSOURI

  1. OWNED BY THE STATE, COUNTY OR OTHER
  2. NONPROFIT CEMETERIES
  3. AGRICULTURAL OR HORTICULTURAL SOCIETIES
  4. SOLAR ENERGY SYSTEM
  5. RELIGIOUS, SCHOOLS AND COLLEGES, AND CHARITIES
    1. RELIGIOUS
    2. SCHOOLS AND COLLEGES
    3. CHARITIES
      1. THE FRANCISCAN TEST
      2. SENIOR CITIZEN HOUSING
      3. HOSPITAL/MEDICAL PROPERTY
      4. MISCELLANEOUS CASES
      5. CONCLUSION
  6. PARTIAL EXEMPTIONS
  7. MISCELLANEOUS EXEMPTIONS
    1. FRATERNAL ORGANIZATION
    2. BANK PERSONAL PROPERTY
    3. MERCHANTS’ AND MANUFACTURERS’ INVENTORY
    4. UNITED STATES’ PROPERTY
    5. REAL PROPERTY OF FORMER PRISONERS OF WAR (POWs) WHO ARE 100% DISABLED BY A SERVICE-RELATED DISABLITY

2.5 THE APPEAL PROCESS

  1. INFORMAL HEARINGS
  2. BOARD OF EQUALIZATION
    1. SECOND, THIRD AND FOURTH CLASS COUNTIES
    2. NON-CHARTER FIRST CLASS COUNTIES
    3. ST. LOUIS CITY
    4. CHARTER FIRST CLASS COUNTIES
  3. STATE TAX COMMISSION
    1. FILING THE COMPLAINT
    2. TWO-YEAR CYCLE
    3. REPRESENTATION
    4. EVIDENCE
    5. PROCEDURE
  4. APPEAL TO THE FULL COMMISSION

2.6 TAX RATES

  1. PRESENT ROLLBACK LAW
  2. RATE-SETTING EXAMPLE

2.7 TAX INCREMENT FINANCING

2.8 PROPERTY TAX ABATEMENTS

  1. ENTERPRISE ZONES AND ENHANCED ENTERPRISE ZONES
    1. ENTERPRISE ZONES
    2. ENHANCED ENTERPRISE ZONES
    3. ASSESSOR’S DUTY
    4. FURTHER INFORMATION
  2. URBAN REDEVELOPMENT CORPORATIONS
  3. LAND CLEARANCE AUTHORITY ABATEMENTS
  4. FOREST CROPLAND

2.9 THE LEGISLATIVE PROCESS

2.10 PUBLIC RECORDS–THE SUNSHINE LAW

  1. DEFINITION
  2. ACCESS
  3. COPYING
  4. PENALTIES
  5. SOURCES
  6. EXCEPTIONS – RECORDS OF MINING COMPANIES

2.11 RULES OF THE STATE TAX COMMISSION

2.12 CALENDAR OF STATUTORY DATES

CHAPTER III – ORIGINAL ASSESSMENT

3.0 ORIGINAL ASSESSMENT

  1. MISSOURI STATUTES
  2. FAIR MARKET VALUE 
  3. UNIT VALUE
  4. CORRELATION 
  5. ALLOCATION 
  6. APPORTIONMENT 

3.1 AIRCRAFT 

3.2 PRIVATE CAR COMPANIES

  1. VALUATION AND ASSESSMENT
  2. ALLOCATION 

3.3 IMPORTANT DATES TO REMEMBER FOR ASSESSOR’S OFFICE

3.4 FORMS 

CHAPTER IV – RATIO STUDY

4.0 ASSESSMENT RATIO STUDIES

4.1 MISSOURI RATIO STUDY’S REQUIREMENTS & CONCEPTS

  1. BACKGROUND
    1. MISSOURI RATIO STUDY TECHNICAL ADVISORY GROUP
  2. RESPONSIBILITIES AND OBJECTIVES
  3. RATIO STUDY CYCLE
  4. STATUTORY ASSESSMENT RATES

4.2 RATIO STUDY METHODOLOGY

  1. RESIDENTIAL RATIO STUDY
  2. AGRICULTURAL RATIO STUDY
  3. COMMERCIAL RATIO STUDY

4.3 DATA REQUIREMENTS

  1. ASSESSMENT ROLL
  2. BUILDING STRUCTURE DATABASE
  3. SALES DATABASE
    1. SALES VALIDATION AND VERIFICATION
    2. REQUESTED SALES DATABASE FIELDS
  4. ONLINE DATA PROCESSES

4.4 DATABASE PREPARATION

  1. COUNTY INFORMATION
  2. FORMATTING FILES

4.5 RANDOM SAMPLING PROCESS

  1. STRATIFIED RANDOM SAMPLING FOR APPRAISAL STUDIES

4.6 RESIDENTIAL SALES STUDY PROCEDURES

  1. RELIABILITY TEST
  2. TRADITIONAL SALES STUDY
  3. COUNTY MEETING PROCESS – RESIDENTIAL SALES STUDY

4.7 RANDOM APPRAISAL STUDY (Residential, Agricultural, Commercial)

  1. APPRAISAL VALUATION
    1. RESIDENTIAL/AGRICULTURAL PROPERTY
    2. COMMERCIAL PROPERTY
  2. INTERNAL REVIEW
  3. EXTERNAL REVIEW (County Meeting)

4.8 DECISION MODEL

  1. RESIDENTIAL DECISION MODEL
    1. RESIDENTIAL SALES STUDY MODEL
    2. RESIDENTIAL APPRAISAL STUDY MODEL
  2. AGRICULTURAL & COMMERCIAL DECISION MODEL

4.9 STATISTICS

  1. MEASURES OF CENTRAL TENDENCY
  2. MEASURES OF VARIATION

CHAPTER V – TECHNICAL ASSISTANCE

5.0 INTRODUCTION

5.1 COMPONENTS OF AN EFFECTIVE ASSESSMENT SYSTEM

  1. ADMINISTRATION
  2. RECORDS
  3. ASSESSMENT MAPS
  4. DATA COLLECTION
  5. VALUATION
  6. STATISTICAL STUDIES
  7. SUMMARY

5.0 THE MASS APPRAISAL PROCESS

  1. DEFINE THE APPRAISAL PROBLEM
  2. CONDUCT A PRELIMINARY STUDY AND OUTLINES THE PLAN
  3. DEVELOP AND ANALYZE MARKET DATA
    1. COST INDEX
    2. DEPRECIATION BENCHMARKS
    3. INCOME AND EXPENSE GUIDES
    4. CAPITALIZATION RATES
    5. GROSS RENT MULTIPLIERS
    6. BASIC UNIT VALUES
  4. APPLICATION OF THE DATA
    1. SALES COMPARISON APPROACH
    2. INCOME APPROACH
    3. COST APPROACH
  5. CORRELATION
  6. FINAL ESTIMATE OF VALUE

5.3 ASSESSMENT MAINTENANCE PLAN

  1. TWO YEAR ASSESSMENT CYCLE
  2. ASSESSMENT MAINTENANCE PLAN
    1. FUNCTIONS AND RESPONSIBILITIES
    2. CHARTS AND REPORTS
    3. FORMS TO UTILIZED
    4. PERSONNEL ESTIMATION CHART AND EMPLOYMENT SCHEDULES
    5. PHASE DELINEATION CHART
      1. ADMINISTRATION
      2. MAPPING
      3. MARKET ANALYSIS
      4. REAL ESTATE
      5. PERSONAL PROPERTY
      6. HEARINGS
    6. PLAN BUDGET
    7. ASSESSMENT MAINTENANCE PLAN – SIGN OFF

5.4 PUBLIC RELATIONS

  1. NEWS MEDIA
  2. PUBLIC APPEARANCES
  3. PERSONAL CONTACTS
  4. CORRESPONDENCE
  5. INFORMATIONAL BROCHURES
  6. QUALITY WEBSITE

5.5 USE OF ELECTRONIC DATA PROCESSING

  1. COMPUTER APPLICATIONS
    1. RECORD MANAGEMENT
    2. VALUATION APPLICATIONS
      1. COST APPROACH
      2. MARKET APPROACH
      3. INCOME APPROACH
      4. STATISTICAL PROGRAMS
    3. ADMINISTRATIVE APPLICATIONS
  2. COMPUTER PROGRAM MINIMUMS
    1. GENERAL REQUIREMENTS
    2. PERSONAL PROPERTY
    3. REAL PROPERTY
    4. APPRAISAL PROGRAMS

5.6 CONTRACTING FOR SERVICES

  1. APPRAISAL
    1. REVALUATION WITH A CONSULTANT
    2. REVALUATION BY PROFESSIONAL FIRM
    3. INVITATION TO BID
      1. PURPOSE AND VALUATION GOALS
      2. GENERAL SCOPE OF COMPANY’S SERVICE
      3.  APPROVAL OF PERSONNEL
      4. APPRAISAL OF LAND
      5. APPRAISAL OF RES., AG, AND COMM. PROPERTY
      6. PROPERTY RECORD CARD
      7. PREPARATION OF BASE COST SCHED./COST INDEX
      8. USE OF COUNTY RECORDS
      9. FINAL REVIEW
      10. WORK AND DELIVERY SCHEDULE
      11. HEARINGS AND DEFENSE OF VALUES
      12. PUBLIC RELATION
      13. TRAINING OF ASSESSMENT PERSONNEL
      14. INSURANCE AND PERFORMANCE BONDS
      15. OFFICE SPACE AND EQUIPMENT
      16. COMPENSATION AND PROGRESS REPORT
      17. RESTRICTIONS AND COMPLETION PENALTIES
    4. CONTRACTOR SELECTION
    5. CONTRACT PREPARATION
    6. COMPLETION OF WORK
  2. AERIAL PHOTOGRAPHY AND MAPPING
    1. INVITATION TO BID
      1. INSTRUCTIONS TO BIDDERS
      2. PROJECT SPECIFICATIONS
      3. DATE TO BE SUBMITTED
    2. SELECTING THE CONTRACTOR
    3. MONITORING THE MAPPING CONTRACT

5.7 ASSESSMENT MAPPING

  1. AERIAL PHOTOGRAPHY
    1. RELIMINARY SURVEY
    2. COUNTY INDEX MAP
    3. BASIC MAPPING MODULE
    4. MAP SCALES
    5. AERIAL ENLARGEMENT TYPES
    6. COUNTY CONTROL NETWORK
    7. FLIGHT PLAN
    8. PHOTOGRAPHIC SPECIFICATIONS
      1. GENERAL SPECIFICATIONS
      2. PHOTOGRAMMETRY
  2. MAP AND PARCEL IDENTIFICATION SYSTEMS
    1. STANDARD PARCEL IDENTIFICATION SYSTEMS
      1. GEOGRAPHIC COORDINATE SYSTEMS
      2. RECTANGULAR SURVEY SYSTEM
      3. MAP BOOK-PAGE IDENTIFICATION SYSTEM
  3. CADASTRAL BASE MAPPING
    1. PLANNING
    2. DATA RESEARCH
    3. INITIAL DEED PLOTTING
    4. FINAL OWNERSHIP MAPS
    5. ASSESSMENT MAP PRINTS
  4. MISSOURI UNIFORM MAP AND PARCEL NUMBERING SYSTEM
    1. MISSOURI UNIFORM PARCEL NUMBERING SYSTEM
    2. OWNERSHIP MAP NUMBERING SYSTEM
  5. ASSESSMENT MAP MAINTENANCE
    1. MAINTENANCE OF MAPS AND OFFICE RECORDS
    2. MAP CONTRACT DELIVERABLES
    3. MAP MAINTENANCE REQUIREMENTS
    4. DRAFTING STANDARDS
    5. OWNERSHIP INDEX SYSTEM
    6. UPDATING PROCEDURES
      1. OWNERSHIP MAPS
      2. PROPERTY INDEX CARDS

5.8 MARKET STUDIES

    1. NEIGHBORHOOD SALES RATIO
    2. LAND ANALYSIS
    3. DEPRECIATION STUDY
    4. INDEX STUDY

CHAPTER VI – VALUATION

6.0 FUNDAMENTAL APPRAISAL CONCEPTS

  1. THE NATURE OF VALUE
  2. THE PROPERTY RIGHTS TO BE APPRAISED
    1. PROPERTY TAXATION
    2. EMINENT DOMAIN
    3. POLICE POWER
    4. ESCHEAT
  3. SPECIAL CHARACTERISTICS OF REAL PROPERTY
    1. IMMOBILITY
    2. DURABILITY
    3. NONSTANDARD COMMODITY
  4. BASIC PRINCIPLES OF VALUE
    1. ANTICIPATION
    2. SUBSTITUTION
      1. THE COST APPROACH
      2. THE MARKET DATA APPROACH
      3. THE INCOME APPROACH
    3. CHANGE
      1. DEVELOPMENT OR GROWTH
      2. EQUILIBRIUM
      3. DISINTEGRATION
    4. COMPETITION
    5. BALANCE
    6. INCREASING AND DECREASING RETURNS
    7. CONTRIBUTION
    8. SURPLUS PRODUCTIVITY
    9. CONFORMITY
    10. SUPPLY AND DEMAND
    11. EXTERNALITIES
    12. HIGHEST AND BEST USE
      1. LEGALLY PERMISSIBLE
      2. PHYSICALLY POSSIBLE
      3. FINANCIALLY FEASIBLE
      4. MAXIMUM PRODUCTIVITY
      5. THE VALUATION PROCESS
        1. DEFINITION OF THE PROBLEM
        2. DATA COLLECTION AND PROPERTY DESCRIPTION
        3. DATA ANALYSIS
        4. LAND VALUE OPINION
        5. APPLICATION OF THE APPROACHES TO VALUE
        6. RECONCILIATION OF VALUE INDICATIONS AND FINAL OPINION OF VALUE
        7. REPORT OF DEFINED VALUE
      6. THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE OR USPAP
        1. THE ETHICS RULE, IN BRIEF
        2. THE RECORD KEEPING RULE IN BRIEF
        3. THE COMPETENCY RULE, IN BRIEF
        4. THE SCOPE OF WORK RULE, IN BRIEF
        5. THE JURISDICTIONAL EXCEPTION RULE, IN BRIEF
        6. STANDARD 1: REAL PROPERTY APPRAISAL, DEVELOPMENT
        7. STANDARD 2: REAL PROPERTY APPRAISAL, REPORTING
        8. STANDARD 3: APPRAISAL REV., DEVELOPMENT & REPORTING
        9. STANDARD 4: REAL PROPERTY APPRAISAL CONSULTING, DEVELOPMENT
        10. STANDARD 5: REAL PROPERTY APPRAISAL CONSULTING, REPORTING
        11. STANDARD 6: MASS APPRAISAL, DEVELOPMENT & REPORTING
        12. STANDARD 7: PERSONAL PROPERTY APPRAISAL, DEVELOPMENT
        13. STANDARD 8: PERSONAL PROPERTY APPRAISAL, REPORTING
        14. STANDARD 9: BUSINESS APPRAISAL, DEVELOPMENT
        15. STANDARD 10: BUSINSESS APPRAISAL, REPORTING

6.1 LAND VALUATION

  1. LAND IDENTIFICATION
    1. RECTANGULAR SURVEY SYSTEM
    2. METES AND BOUNDS DESCRIPTIONS
    3. LOT AND BLOCK SYSTEM
  2. SITE ANALYSIS – VALUATION FACTORS
    1. PHYSICAL FACTORS
    2. ECONOMIC FACTORS
    3. GOVERNMENTAL FACTORS
    4. SOCIAL FACTORS
  3. SITE ANALYSIS – UNITS OF COMPARISON
    1. STANDARD UNITS OF MEASUREMENTS
      1. FRONT FOOT
      2. SQUARE FOOT
      3. ACRE
      4. SITE/LOT UNIT
      5. BUILDABLE UNIT
    2. STANDARD UNIT ADJUSTMENTS
      1. EXCESS FRONTAGE INFLUENCE
      2. DEPTH INFLUENCE
      3. CORNER INFLUENCE
      4. IRREGULAR LOTS
  4. LAND VALUATION
    1. SALES COMPARISON
    2. EXTRACTION OR ALLOCATION

6.2 THE COST APPROACH

  1. THE COST CONCEPT
    1. METHODS OF COST ESTIMATING
    2. DEPRECIATION
    3. ESTIMATING ACCRUED DEPRECIATION
      1. ANALYSIS OF SUBJECT PROPERTY
        1. INDICATION OF NEIGHBORHOOD
        2. SITE AND IMPROVEMENT INSPECTION
        3. PHYSICAL PROPERTY CHARACTERISTICS
        4. IDENTIFICATION OF HIGHEST AND BEST VALUE
      2. MARKET RESEARCH AND ANALYSIS
      3. THE COMPARISON AND ADJUSTMENT PROCESS
        1. UNITS OF COMPARISON
          1. RESIDENTIAL PROPERTIES
          2. COMMERCIAL PROPERTIES
          3. INDUSTRIAL PROPERTIES
        2. THE ELEMENTS OF COMPARISON
          1. MARKET CONDITION (TIME)
          2. LOCATION
          3. CONDITION OF SALE
          4. FINANCING TERMS
          5. PHYSICAL CHARACTERISTICS
        3. ADJUSTMENT TECHNIQUES
          1. LUMP-SUM OR WHOLE PROPERTY ADJUSTMENTS
          2. COMPONENT DOLLAR ADJUSTMENT
          3. PERCENTAGE ADJUSTMENTS
          4. PERCENTAGE FACTORING ADJUSTMENTS
      4. RECONCILIATION OF VALUE AND FINAL OPINION OF VALUE
      5. MULTIPLE REGRESSION ANALYSIS

6.4 THE INCOME APPROACH TO VALUE

  1. BASIC ASSUMPTIONS
    1. VALUE IS A FUNCTION OF INCOME
    2. REMIANING ECONOMIC LIFE
    3. DISCOUNTING AND THE CAPITALIZATION PROCESS
  2. PROCESSING INCOME
    1. GROSS INCOME
    2. VACANY AND COLLECTION LOSSES
    3. EFFECTIVE GROSS INCOME
    4. EXPENSES
      1. FIXED EXPENSES
      2. OPERATING EXPENSE
      3. RESERVES FOR REPLACEMENT
    5. NET INCOME
    6. CAPITALIZATION REATES AND MULTIPLIERS
      1. COMPONENTS OF A CAPITALIZATION RATE
        1. INTEREST RATE
        2. RECAPTURE RATE
        3. EFFECTIVE TAX RATE
      2. MARKET DERIVED RATES AND MULTIPLIERS
        1. GROSS RENT MULTIPLIERS AND GROSS INCOME MULTIPLIERS
        2. OVERALL RATES
        3. DISCOUNT RATES
      3. BAND-OF-INVESTMENT METHOD
  3. CAPITALIZATION METHODS
    1. DIRECT CAPITALIZATION
    2. MORTGAGE-EQUITY CAPITALIZATION
      1. BAND-OF-INVESTMENT
    3. DISCOUNTED CASH FLOW

6.5 RECONCILIATION OF VALUE/CORRELATION

SUPPLEMENT

LAND VALUATION

  1. SUBDIVISION DEVELOPMENT ANALYSIS
  2. CAPITALIZATION OF GROUD RENT
  3. LAND RESIDUAL CAPITALIZATION

INCOME APPROACH

  1. BAND-OF-INVESTMENT METHOD
    1. LOAN AMORTIZATION AND EQUITY BUILDUP
  2. STRAIGHT-LINE CAPITALIZATION
  3. ANNUITY CAPITALIZTION
    1. THE INWOOD PREMISE
    2. THE HOSKOLD PREMISE
    3. CAPITALIZTION TECHNIQUES
      1. LAND RESIDUAL TECHNIQUE
      2. BUILDING RESIDUAL TECHNIQUE
      3. PROPERTY RESIDUAL TECHNIQUE

CHAPTER VII – SPECIALITY PROPERTY GUIDELINES

7.0 SPECIALITY PROPERTY GUIDELINE

7.1 RURAL ELECTRIC COOPERATIVES GUIDELINES

  1. OVERVIEW
  2. MARKET VALUE ESTIMATE
  3. UPDATES

7.2 CABLE TELEVISION SYSTEM VALUATION GUIDELINES

  1. CABLE TELEVISION SYSTEMS
    1. DEFINITION OF SYSTEM
      1. HEADEND 
      2. DISTRIBUTION
      3. SUBSCRIBER CONNECTION
    2. REGULATION 
    3. CLASSIFICATION OF PROPERTY AD VALOREM TAXATION
      1. REAL PROPERTY
      2. TANGIBLE PERSONAL PROPE

7.3 AG LAND VALUATION GUIDELINES

SUPPLEMENTAL LAND GRADING INFORMATION

  1. SOIL CHARACTERISTICS
    1. LAND FEATURES
    2. SLOPES 
    3. EROSION
    4. FLOODING 
    5. PRODUCTIVITY 
    6. LIMATE AND MOISTURE AVAILABILITY
    7. COLOR OF SOIL
    8. TEXTURE 
    9. SUBSOIL CHARACTERISTICS
    10. SOIL TYPES
    11. OTHER FACTORS
  2. SOIL SURVEY
  3. PRODUCTIVITY INDEX RATING (PI)
  4. CONCLUSION 

SUPPLEMENTAL LAND GRADING DEFINITIONS

  1. AGRICULTURAL/HORICULTURAL LAND CRADES
    1. GRADE 1
    2. GRADE 2
    3. GRADE 3
    4. GRADE 4
    5. GRADE 5
    6. GRADE 6
    7. GRADE 7
    8. GRADE 8
    9. DEFINITIONS 

7.4 ASSESSMENT OF NATURAL GAS DISTRIBUTION COMPANIES

7.5 LIVESTOCK VALUE GUIDELINES

7.6 BILLBOARDS – COST APPROACH TO VALUE

7.7 ASSESSMENT OF WIND ENERGY FACILITIES

7.8 ASSESSMENT OF PROPANE TANKS

7.9 STATE ASSESSMENT OF COMMERCIAL AIRCRAFT NOT OWNED BY AIRLINE COMPANIES

7.10 SUBSIDIZED HOUSING