Definitions--revision of prior levy, when, procedure--calculation ofstate aid for public schools, taxing authority's duties.
137.073. 1. As used in this section, the following terms mean:
(1) "General reassessment", changes in value, entered in theassessor's books, of a substantial portion of the parcels of real propertywithin a county resulting wholly or partly from reappraisal of value orother actions of the assessor or county equalization body or ordered by thestate tax commission or any court;
(2) "Tax rate", "rate", or "rate of levy", singular or plural,includes the tax rate for each purpose of taxation of property a taxingauthority is authorized to levy without a vote and any tax rate authorizedby election, including bond interest and sinking fund;
(3) "Tax rate ceiling", a tax rate as revised by the taxing authorityto comply with the provisions of this section or when a court hasdetermined the tax rate; except that, other provisions of law to thecontrary notwithstanding, a school district may levy the operating levy forschool purposes required for the current year pursuant to subsection 2 ofsection 163.021, RSMo, less all adjustments required pursuant to article X,section 22 of the Missouri Constitution, if such tax rate does not exceedthe highest tax rate in effect subsequent to the 1980 tax year. This isthe maximum tax rate that may be levied, unless a higher tax rate ceilingis approved by voters of the political subdivision as provided in thissection;
(4) "Tax revenue", when referring to the previous year, means theactual receipts from ad valorem levies on all classes of property,including state-assessed property, in the immediately preceding fiscal yearof the political subdivision, plus an allowance for taxes billed but notcollected in the fiscal year and plus an additional allowance for therevenue which would have been collected from property which was annexed bysuch political subdivision but which was not previously used in determiningtax revenue pursuant to this section. The term "tax revenue" shall notinclude any receipts from ad valorem levies on any property of a railroadcorporation or a public utility, as these terms are defined in section386.020, RSMo, which were assessed by the assessor of a county or city inthe previous year but are assessed by the state tax commission in thecurrent year. All school districts and those counties levying sales taxespursuant to chapter 67, RSMo, shall include in the calculation of taxrevenue an amount equivalent to that by which they reduced property taxlevies as a result of sales tax pursuant to section 67.505, RSMo, andsection 164.013, RSMo, or as excess home dock city or county fees asprovided in subsection 4 of section 313.820, RSMo, in the immediatelypreceding fiscal year but not including any amount calculated to adjust forprior years. For purposes of political subdivisions which were authorizedto levy a tax in the prior year but which did not levy such tax or levied areduced rate, the term "tax revenue", as used in relation to the revisionof tax levies mandated by law, shall mean the revenues equal to the amountthat would have been available if the voluntary rate reduction had not beenmade.
2. Whenever changes in assessed valuation are entered in theassessor's books for any personal property, in the aggregate, or for anysubclass of real property as such subclasses are established in section4(b) of article X of the Missouri Constitution and defined in section137.016, the county clerk in all counties and the assessor of St. LouisCity shall notify each political subdivision wholly or partially within thecounty or St. Louis City of the change in valuation of each subclass ofreal property, individually, and personal property, in the aggregate,exclusive of new construction and improvements. All political subdivisionsshall immediately revise the applicable rates of levy for each purpose foreach subclass of real property, individually, and personal property, in theaggregate, for which taxes are levied to the extent necessary to producefrom all taxable property, exclusive of new construction and improvements,substantially the same amount of tax revenue as was produced in theprevious year for each subclass of real property, individually, andpersonal property, in the aggregate, except that the rate may not exceedthe most recent voter-approved rate. Such tax revenue shall not includeany receipts from ad valorem levies on any real property which was assessedby the assessor of a county or city in such previous year but is assessedby the assessor of a county or city in the current year in a differentsubclass of real property. Where the taxing authority is a school districtfor the purposes of revising the applicable rates of levy for each subclassof real property, the tax revenues from state-assessed railroad and utilityproperty shall be apportioned and attributed to each subclass of realproperty based on the percentage of the total assessed valuation of thecounty that each subclass of real property represents in the currenttaxable year. As provided in section 22 of article X of the constitution,a political subdivision may also revise each levy to allow for inflationaryassessment growth occurring within the political subdivision. Theinflationary growth factor for any such subclass of real property orpersonal property shall be limited to the actual assessment growth in suchsubclass or class, exclusive of new construction and improvements, andexclusive of the assessed value on any real property which was assessed bythe assessor of a county or city in the current year in a differentsubclass of real property, but not to exceed the consumer price index orfive percent, whichever is lower. Should the tax revenue of a politicalsubdivision from the various tax rates determined in this subsection bedifferent than the tax revenue that would have been determined from asingle tax rate as calculated pursuant to the method of calculation in thissubsection prior to January 1, 2003, then the political subdivision shallrevise the tax rates of those subclasses of real property, individually,and/or personal property, in the aggregate, in which there is a tax ratereduction, pursuant to the provisions of this subsection. Such revisionshall yield an amount equal to such difference and shall be apportionedamong such subclasses of real property, individually, and/or personalproperty, in the aggregate, based on the relative assessed valuation of theclass or subclasses of property experiencing a tax rate reduction. Suchrevision in the tax rates of each class or subclass shall be made bycomputing the percentage of current year adjusted assessed valuation ofeach class or subclass with a tax rate reduction to the total current yearadjusted assessed valuation of the class or subclasses with a tax ratereduction, multiplying the resulting percentages by the revenue differencebetween the single rate calculation and the calculations pursuant to thissubsection and dividing by the respective adjusted current year assessedvaluation of each class or subclass to determine the adjustment to the rateto be levied upon each class or subclass of property. The adjustmentcomputed herein shall be multiplied by one hundred, rounded to fourdecimals in the manner provided in this subsection, and added to theinitial rate computed for each class or subclass of property.Notwithstanding any provision of this subsection to the contrary, norevision to the rate of levy for personal property shall cause such levy toincrease over the levy for personal property from the prior year.
3. (1) Where the taxing authority is a school district, it shall berequired to revise the rates of levy to the extent necessary to producefrom all taxable property, including state-assessed railroad and utilityproperty, which shall be separately estimated in addition to other datarequired in complying with section 164.011, RSMo, substantially the amountof tax revenue permitted in this section. In the year following tax ratereduction, the tax rate ceiling may be adjusted to offset such district'sreduction in the apportionment of state school moneys due to its reducedtax rate. However, in the event any school district, in calculating a taxrate ceiling pursuant to this section, requiring the estimating of effectsof state-assessed railroad and utility valuation or loss of state aid,discovers that the estimates used result in receipt of excess revenues,which would have required a lower rate if the actual information had beenknown, the school district shall reduce the tax rate ceiling in thefollowing year to compensate for the excess receipts, and the recalculatedrate shall become the tax rate ceiling for purposes of this section.
(2) For any political subdivision which experiences a reduction inthe amount of assessed valuation relating to a prior year, due to decisionsof the state tax commission or a court pursuant to sections 138.430 to138.433, RSMo, or due to clerical errors or corrections in the calculationor recordation of any assessed valuation:
(a) Such political subdivision may revise the tax rate ceiling foreach purpose it levies taxes to compensate for the reduction in assessedvalue occurring after the political subdivision calculated the tax rateceiling for the particular subclass of real property or for personalproperty, in the aggregate, in a prior year. Such revision by thepolitical subdivision shall be made at the time of the next calculation ofthe tax rate for the particular subclass of real property or for personalproperty, in the aggregate, after the reduction in assessed valuation hasbeen determined and shall be calculated in a manner that results in therevised tax rate ceiling being the same as it would have been had thecorrected or finalized assessment been available at the time of the priorcalculation;
(b) In addition, for up to three years following the determination ofthe reduction in assessed valuation as a result of circumstances defined inthis subdivision, such political subdivision may levy a tax rate for eachpurpose it levies taxes above the revised tax rate ceiling provided inparagraph (a) of this subdivision to recoup any revenues it was entitled toreceive had the corrected or finalized assessment been available at thetime of the prior calculation.
4. (1) In order to implement the provisions of this section andsection 22 of article X of the Constitution of Missouri, the term"improvements" shall apply to both real and personal property. In order todetermine the value of new construction and improvements, each countyassessor shall maintain a record of real property valuations in such amanner as to identify each year the increase in valuation for eachpolitical subdivision in the county as a result of new construction andimprovements. The value of new construction and improvements shall includethe additional assessed value of all improvements or additions to realproperty which were begun after and were not part of the prior year'sassessment, except that the additional assessed value of all improvementsor additions to real property which had been totally or partially exemptfrom ad valorem taxes pursuant to sections 99.800 to 99.865, RSMo, sections135.200 to 135.255, RSMo, and section 353.110, RSMo, shall be included inthe value of new construction and improvements when the property becomestotally or partially subject to assessment and payment of all ad valoremtaxes. The aggregate increase in valuation of personal property for thecurrent year over that of the previous year is the equivalent of the newconstruction and improvements factor for personal property.Notwithstanding any opt-out implemented pursuant to subsection 15 ofsection 137.115, the assessor shall certify the amount of new constructionand improvements and the amount of assessed value on any real propertywhich was assessed by the assessor of a county or city in such previousyear but is assessed by the assessor of a county or city in the currentyear in a different subclass of real property separately for each of thethree subclasses of real property for each political subdivision to thecounty clerk in order that political subdivisions shall have thisinformation for the purpose of calculating tax rates pursuant to thissection and section 22, article X, Constitution of Missouri. In addition,the state tax commission shall certify each year to each county clerk theincrease in the general price level as measured by the Consumer Price Indexfor All Urban Consumers for the United States, or its successorpublications, as defined and officially reported by the United StatesDepartment of Labor, or its successor agency. The state tax commissionshall certify the increase in such index on the latest twelve-month basisavailable on February first of each year over the immediately precedingprior twelve-month period in order that political subdivisions shall havethis information available in setting their tax rates according to law andsection 22 of article X of the Constitution of Missouri. For purposes ofimplementing the provisions of this section and section 22 of article X ofthe Missouri Constitution, the term "property" means all taxable property,including state-assessed property.
(2) Each political subdivision required to revise rates of levypursuant to this section or section 22 of article X of the Constitution ofMissouri shall calculate each tax rate it is authorized to levy and, inestablishing each tax rate, shall consider each provision for tax raterevision provided in this section and section 22 of article X of theConstitution of Missouri, separately and without regard to annual tax ratereductions provided in section 67.505, RSMo, and section 164.013, RSMo.Each political subdivision shall set each tax rate it is authorized to levyusing the calculation that produces the lowest tax rate ceiling. It isfurther the intent of the general assembly, pursuant to the authority ofsection 10(c) of article X of the Constitution of Missouri, that theprovisions of such section be applicable to tax rate revisions mandatedpursuant to section 22 of article X of the Constitution of Missouri as toreestablishing tax rates as revised in subsequent years, enforcementprovisions, and other provisions not in conflict with section 22 of articleX of the Constitution of Missouri. Annual tax rate reductions provided insection 67.505, RSMo, and section 164.013, RSMo, shall be applied to thetax rate as established pursuant to this section and section 22 of articleX of the Constitution of Missouri, unless otherwise provided by law.
5. (1) In all political subdivisions, the tax rate ceilingestablished pursuant to this section shall not be increased unless approvedby a vote of the people. Approval of the higher tax rate shall be by atleast a majority of votes cast. When a proposed higher tax rate requiresapproval by more than a simple majority pursuant to any provision of law orthe constitution, the tax rate increase must receive approval by at leastthe majority required.
(2) When voters approve an increase in the tax rate, the amount ofthe increase shall be added to the tax rate ceiling as calculated pursuantto this section to the extent the total rate does not exceed any maximumrate prescribed by law. If a ballot question presents a stated tax ratefor approval rather than describing the amount of increase in the question,the stated tax rate approved shall be adjusted as provided in this sectionand, so adjusted, shall be the current tax rate ceiling. The increased taxrate ceiling as approved shall be adjusted such that when applied to thecurrent total assessed valuation of the political subdivision, excludingnew construction and improvements since the date of the election approvingsuch increase, the revenue derived from the adjusted tax rate ceiling isequal to the sum of: the amount of revenue which would have been derivedby applying the voter-approved increased tax rate ceiling to total assessedvaluation of the political subdivision, as most recently certified by thecity or county clerk on or before the date of the election in which suchincrease is approved, increased by the percentage increase in the consumerprice index, as provided by law. Such adjusted tax rate ceiling may beapplied to the total assessed valuation of the political subdivision at thesetting of the next tax rate. If a ballot question presents a phased-intax rate increase, upon voter approval, each tax rate increase shall beadjusted in the manner prescribed in this section to yield the sum of: theamount of revenue that would be derived by applying such voter-approvedincreased rate to the total assessed valuation, as most recently certifiedby the city or county clerk on or before the date of the election in whichsuch increase was approved, increased by the percentage increase in theconsumer price index, as provided by law, from the date of the election tothe time of such increase and, so adjusted, shall be the current tax rateceiling.
(3) The governing body of any political subdivision may levy a taxrate lower than its tax rate ceiling and may, in a nonreassessment year,increase that lowered tax rate to a level not exceeding the tax rateceiling without voter approval in the manner provided under subdivision (4)of this subsection. Nothing in this section shall be construed asprohibiting a political subdivision from voluntarily levying a tax ratelower than that which is required under the provisions of this section orfrom seeking voter approval of a reduction to such political subdivision'stax rate ceiling.
(4) In a year of general reassessment, a governing body whose taxrate is lower than its tax rate ceiling shall revise its tax rate pursuantto the provisions of subsection 4 of this section as if its tax rate was atthe tax rate ceiling. In a year following general reassessment, if suchgoverning body intends to increase its tax rate, the governing body shallconduct a public hearing, and in a public meeting it shall adopt anordinance, resolution, or policy statement justifying its action prior tosetting and certifying its tax rate. The provisions of this subdivisionshall not apply to any political subdivision which levies a tax rate lowerthan its tax rate ceiling solely due to a reduction required by lawresulting from sales tax collections. The provisions of this subdivisionshall not apply to any political subdivision which has received voterapproval for an increase to its tax rate ceiling subsequent to setting itsmost recent tax rate.
6. (1) For the purposes of calculating state aid for public schoolspursuant to section 163.031, RSMo, each taxing authority which is a schooldistrict shall determine its proposed tax rate as a blended rate of theclasses or subclasses of property. Such blended rate shall be calculatedby first determining the total tax revenue of the property within thejurisdiction of the taxing authority, which amount shall be equal to thesum of the products of multiplying the assessed valuation of each class andsubclass of property by the corresponding tax rate for such class orsubclass, then dividing the total tax revenue by the total assessedvaluation of the same jurisdiction, and then multiplying the resultingquotient by a factor of one hundred. Where the taxing authority is aschool district, such blended rate shall also be used by such schooldistrict for calculating revenue from state-assessed railroad and utilityproperty as defined in chapter 151, RSMo, and for apportioning the tax rateby purpose.
(2) Each taxing authority proposing to levy a tax rate in any yearshall notify the clerk of the county commission in the county or countieswhere the tax rate applies of its tax rate ceiling and its proposed taxrate. Each taxing authority shall express its proposed tax rate in afraction equal to the nearest one-tenth of a cent, unless its proposed taxrate is in excess of one dollar, then one/one-hundredth of a cent. If ataxing authority shall round to one/one-hundredth of a cent, it shall roundup a fraction greater than or equal to five/one-thousandth of one cent tothe next higher one/one-hundredth of a cent; if a taxing authority shallround to one-tenth of a cent, it shall round up a fraction greater than orequal to five/one-hundredths of a cent to the next higher one-tenth of acent. Any taxing authority levying a property tax rate shall provide data,in such form as shall be prescribed by the state auditor by rule,substantiating such tax rate complies with Missouri law. All forms for thecalculation of rates pursuant to this section shall be promulgated as arule and shall not be incorporated by reference. The state auditor shallpromulgate rules for any and all forms for the calculation of ratespursuant to this section which do not currently exist in rule form or thathave been incorporated by reference. In addition, each taxing authorityproposing to levy a tax rate for debt service shall provide data, in suchform as shall be prescribed by the state auditor by rule, substantiatingthe tax rate for debt service complies with Missouri law. A tax rateproposed for annual debt service requirements will be prima facie valid if,after making the payment for which the tax was levied, bonds remainoutstanding and the debt fund reserves do not exceed the following year'spayments. The county clerk shall keep on file and available for publicinspection all such information for a period of three years. The clerkshall, within three days of receipt, forward a copy of the notice of ataxing authority's tax rate ceiling and proposed tax rate and anysubstantiating data to the state auditor. The state auditor shall, withinfifteen days of the date of receipt, examine such information and return tothe county clerk his or her findings as to compliance of the tax rateceiling with this section and as to compliance of any proposed tax rate fordebt service with Missouri law. If the state auditor believes that ataxing authority's proposed tax rate does not comply with Missouri law,then the state auditor's findings shall include a recalculated tax rate,and the state auditor may request a taxing authority to submitdocumentation supporting such taxing authority's proposed tax rate. Thecounty clerk shall immediately forward a copy of the auditor's findings tothe taxing authority and shall file a copy of the findings with theinformation received from the taxing authority. The taxing authority shallhave fifteen days from the date of receipt from the county clerk of thestate auditor's findings and any request for supporting documentation toaccept or reject in writing the rate change certified by the state auditorand to submit all requested information to the state auditor. A copy ofthe taxing authority's acceptance or rejection and any informationsubmitted to the state auditor shall also be mailed to the county clerk.If a taxing authority rejects a rate change certified by the state auditorand the state auditor does not receive supporting information whichjustifies the taxing authority's original or any subsequent proposed taxrate, then the state auditor shall refer the perceived violations of suchtaxing authority to the attorney general's office and the attorney generalis authorized to obtain injunctive relief to prevent the taxing authorityfrom levying a violative tax rate.
7. No tax rate shall be extended on the tax rolls by the county clerkunless the political subdivision has complied with the foregoing provisionsof this section.
8. Whenever a taxpayer has cause to believe that a taxing authorityhas not complied with the provisions of this section, the taxpayer may makea formal complaint with the prosecuting attorney of the county. Where theprosecuting attorney fails to bring an action within ten days of the filingof the complaint, the taxpayer may bring a civil action pursuant to thissection and institute an action as representative of a class of alltaxpayers within a taxing authority if the class is so numerous thatjoinder of all members is impracticable, if there are questions of law orfact common to the class, if the claims or defenses of the representativeparties are typical of the claims or defenses of the class, and if therepresentative parties will fairly and adequately protect the interests ofthe class. In any class action maintained pursuant to this section, thecourt may direct to the members of the class a notice to be published atleast once each week for four consecutive weeks in a newspaper of generalcirculation published in the county where the civil action is commenced andin other counties within the jurisdiction of a taxing authority. Thenotice shall advise each member that the court will exclude him or her fromthe class if he or she so requests by a specified date, that the judgment,whether favorable or not, will include all members who do not requestexclusion, and that any member who does not request exclusion may, if he orshe desires, enter an appearance. In any class action brought pursuant tothis section, the court, in addition to the relief requested, shall assessagainst the taxing authority found to be in violation of this section thereasonable costs of bringing the action, including reasonable attorney'sfees, provided no attorney's fees shall be awarded any attorney orassociation of attorneys who receive public funds from any source for theirservices. Any action brought pursuant to this section shall be set forhearing as soon as practicable after the cause is at issue.
9. If in any action, including a class action, the court issues anorder requiring a taxing authority to revise the tax rates as provided inthis section or enjoins a taxing authority from the collection of a taxbecause of its failure to revise the rate of levy as provided in thissection, any taxpayer paying his or her taxes when an improper rate isapplied has erroneously paid his or her taxes in part, whether or not thetaxes are paid under protest as provided in section 139.031, RSMo, orotherwise contested. The part of the taxes paid erroneously is thedifference in the amount produced by the original levy and the amountproduced by the revised levy. The township or county collector of taxes orthe collector of taxes in any city shall refund the amount of the taxerroneously paid. The taxing authority refusing to revise the rate of levyas provided in this section shall make available to the collector all fundsnecessary to make refunds pursuant to this subsection. No taxpayer shallreceive any interest on any money erroneously paid by him or her pursuantto this subsection. Effective in the 1994 tax year, nothing in thissection shall be construed to require a taxing authority to refund any taxerroneously paid prior to or during the third tax year preceding thecurrent tax year.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2004, shall beinvalid and void.
Levee districts, readjustment of assessment of benefits for maintenance tax purposes, RSMo 245.197
Levy not imposed in year, rate of tax, RSMo 278.250
(2008) Section allowing a political subdivision to revise a levy to allow for inflationary assessment growth within that political subdivision, as long as the revision does not exceed the lesser of the consumer price index or five percent, does not violate section 22(a) of Article X of the Missouri Constitution. Franklin County ex rel. Parks v. Franklin County Commission, 269 S.W.3d 26 (Mo.banc).
Definitions--revision of prior levy, when, procedure--calculation ofstate aid for public schools, taxing authority's duties.
137.073. 1. As used in this section, the following terms mean:
(1) "General reassessment", changes in value, entered in theassessor's books, of a substantial portion of the parcels of real propertywithin a county resulting wholly or partly from reappraisal of value orother actions of the assessor or county equalization body or ordered by thestate tax commission or any court;
(2) "Tax rate", "rate", or "rate of levy", singular or plural,includes the tax rate for each purpose of taxation of property a taxingauthority is authorized to levy without a vote and any tax rate authorizedby election, including bond interest and sinking fund;
(3) "Tax rate ceiling", a tax rate as revised by the taxing authorityto comply with the provisions of this section or when a court hasdetermined the tax rate; except that, other provisions of law to thecontrary notwithstanding, a school district may levy the operating levy forschool purposes required for the current year pursuant to subsection 2 ofsection 163.021, RSMo, less all adjustments required pursuant to article X,section 22 of the Missouri Constitution, if such tax rate does not exceedthe highest tax rate in effect subsequent to the 1980 tax year. This isthe maximum tax rate that may be levied, unless a higher tax rate ceilingis approved by voters of the political subdivision as provided in thissection;
(4) "Tax revenue", when referring to the previous year, means theactual receipts from ad valorem levies on all classes of property,including state-assessed property, in the immediately preceding fiscal yearof the political subdivision, plus an allowance for taxes billed but notcollected in the fiscal year and plus an additional allowance for therevenue which would have been collected from property which was annexed bysuch political subdivision but which was not previously used in determiningtax revenue pursuant to this section. The term "tax revenue" shall notinclude any receipts from ad valorem levies on any property of a railroadcorporation or a public utility, as these terms are defined in section386.020, RSMo, which were assessed by the assessor of a county or city inthe previous year but are assessed by the state tax commission in thecurrent year. All school districts and those counties levying sales taxespursuant to chapter 67, RSMo, shall include in the calculation of taxrevenue an amount equivalent to that by which they reduced property taxlevies as a result of sales tax pursuant to section 67.505, RSMo, andsection 164.013, RSMo, or as excess home dock city or county fees asprovided in subsection 4 of section 313.820, RSMo, in the immediatelypreceding fiscal year but not including any amount calculated to adjust forprior years. For purposes of political subdivisions which were authorizedto levy a tax in the prior year but which did not levy such tax or levied areduced rate, the term "tax revenue", as used in relation to the revisionof tax levies mandated by law, shall mean the revenues equal to the amountthat would have been available if the voluntary rate reduction had not beenmade.
2. Whenever changes in assessed valuation are entered in theassessor's books for any personal property, in the aggregate, or for anysubclass of real property as such subclasses are established in section4(b) of article X of the Missouri Constitution and defined in section137.016, the county clerk in all counties and the assessor of St. LouisCity shall notify each political subdivision wholly or partially within thecounty or St. Louis City of the change in valuation of each subclass ofreal property, individually, and personal property, in the aggregate,exclusive of new construction and improvements. All political subdivisionsshall immediately revise the applicable rates of levy for each purpose foreach subclass of real property, individually, and personal property, in theaggregate, for which taxes are levied to the extent necessary to producefrom all taxable property, exclusive of new construction and improvements,substantially the same amount of tax revenue as was produced in theprevious year for each subclass of real property, individually, andpersonal property, in the aggregate, except that the rate may not exceedthe most recent voter-approved rate. Such tax revenue shall not includeany receipts from ad valorem levies on any real property which was assessedby the assessor of a county or city in such previous year but is assessedby the assessor of a county or city in the current year in a differentsubclass of real property. Where the taxing authority is a school districtfor the purposes of revising the applicable rates of levy for each subclassof real property, the tax revenues from state-assessed railroad and utilityproperty shall be apportioned and attributed to each subclass of realproperty based on the percentage of the total assessed valuation of thecounty that each subclass of real property represents in the currenttaxable year. As provided in section 22 of article X of the constitution,a political subdivision may also revise each levy to allow for inflationaryassessment growth occurring within the political subdivision. Theinflationary growth factor for any such subclass of real property orpersonal property shall be limited to the actual assessment growth in suchsubclass or class, exclusive of new construction and improvements, andexclusive of the assessed value on any real property which was assessed bythe assessor of a county or city in the current year in a differentsubclass of real property, but not to exceed the consumer price index orfive percent, whichever is lower. Should the tax revenue of a politicalsubdivision from the various tax rates determined in this subsection bedifferent than the tax revenue that would have been determined from asingle tax rate as calculated pursuant to the method of calculation in thissubsection prior to January 1, 2003, then the political subdivision shallrevise the tax rates of those subclasses of real property, individually,and/or personal property, in the aggregate, in which there is a tax ratereduction, pursuant to the provisions of this subsection. Such revisionshall yield an amount equal to such difference and shall be apportionedamong such subclasses of real property, individually, and/or personalproperty, in the aggregate, based on the relative assessed valuation of theclass or subclasses of property experiencing a tax rate reduction. Suchrevision in the tax rates of each class or subclass shall be made bycomputing the percentage of current year adjusted assessed valuation ofeach class or subclass with a tax rate reduction to the total current yearadjusted assessed valuation of the class or subclasses with a tax ratereduction, multiplying the resulting percentages by the revenue differencebetween the single rate calculation and the calculations pursuant to thissubsection and dividing by the respective adjusted current year assessedvaluation of each class or subclass to determine the adjustment to the rateto be levied upon each class or subclass of property. The adjustmentcomputed herein shall be multiplied by one hundred, rounded to fourdecimals in the manner provided in this subsection, and added to theinitial rate computed for each class or subclass of property.Notwithstanding any provision of this subsection to the contrary, norevision to the rate of levy for personal property shall cause such levy toincrease over the levy for personal property from the prior year.
3. (1) Where the taxing authority is a school district, it shall berequired to revise the rates of levy to the extent necessary to producefrom all taxable property, including state-assessed railroad and utilityproperty, which shall be separately estimated in addition to other datarequired in complying with section 164.011, RSMo, substantially the amountof tax revenue permitted in this section. In the year following tax ratereduction, the tax rate ceiling may be adjusted to offset such district'sreduction in the apportionment of state school moneys due to its reducedtax rate. However, in the event any school district, in calculating a taxrate ceiling pursuant to this section, requiring the estimating of effectsof state-assessed railroad and utility valuation or loss of state aid,discovers that the estimates used result in receipt of excess revenues,which would have required a lower rate if the actual information had beenknown, the school district shall reduce the tax rate ceiling in thefollowing year to compensate for the excess receipts, and the recalculatedrate shall become the tax rate ceiling for purposes of this section.
(2) For any political subdivision which experiences a reduction inthe amount of assessed valuation relating to a prior year, due to decisionsof the state tax commission or a court pursuant to sections 138.430 to138.433, RSMo, or due to clerical errors or corrections in the calculationor recordation of any assessed valuation:
(a) Such political subdivision may revise the tax rate ceiling foreach purpose it levies taxes to compensate for the reduction in assessedvalue occurring after the political subdivision calculated the tax rateceiling for the particular subclass of real property or for personalproperty, in the aggregate, in a prior year. Such revision by thepolitical subdivision shall be made at the time of the next calculation ofthe tax rate for the particular subclass of real property or for personalproperty, in the aggregate, after the reduction in assessed valuation hasbeen determined and shall be calculated in a manner that results in therevised tax rate ceiling being the same as it would have been had thecorrected or finalized assessment been available at the time of the priorcalculation;
(b) In addition, for up to three years following the determination ofthe reduction in assessed valuation as a result of circumstances defined inthis subdivision, such political subdivision may levy a tax rate for eachpurpose it levies taxes above the revised tax rate ceiling provided inparagraph (a) of this subdivision to recoup any revenues it was entitled toreceive had the corrected or finalized assessment been available at thetime of the prior calculation.
4. (1) In order to implement the provisions of this section andsection 22 of article X of the Constitution of Missouri, the term"improvements" shall apply to both real and personal property. In order todetermine the value of new construction and improvements, each countyassessor shall maintain a record of real property valuations in such amanner as to identify each year the increase in valuation for eachpolitical subdivision in the county as a result of new construction andimprovements. The value of new construction and improvements shall includethe additional assessed value of all improvements or additions to realproperty which were begun after and were not part of the prior year'sassessment, except that the additional assessed value of all improvementsor additions to real property which had been totally or partially exemptfrom ad valorem taxes pursuant to sections 99.800 to 99.865, RSMo, sections135.200 to 135.255, RSMo, and section 353.110, RSMo, shall be included inthe value of new construction and improvements when the property becomestotally or partially subject to assessment and payment of all ad valoremtaxes. The aggregate increase in valuation of personal property for thecurrent year over that of the previous year is the equivalent of the newconstruction and improvements factor for personal property.Notwithstanding any opt-out implemented pursuant to subsection 15 ofsection 137.115, the assessor shall certify the amount of new constructionand improvements and the amount of assessed value on any real propertywhich was assessed by the assessor of a county or city in such previousyear but is assessed by the assessor of a county or city in the currentyear in a different subclass of real property separately for each of thethree subclasses of real property for each political subdivision to thecounty clerk in order that political subdivisions shall have thisinformation for the purpose of calculating tax rates pursuant to thissection and section 22, article X, Constitution of Missouri. In addition,the state tax commission shall certify each year to each county clerk theincrease in the general price level as measured by the Consumer Price Indexfor All Urban Consumers for the United States, or its successorpublications, as defined and officially reported by the United StatesDepartment of Labor, or its successor agency. The state tax commissionshall certify the increase in such index on the latest twelve-month basisavailable on February first of each year over the immediately precedingprior twelve-month period in order that political subdivisions shall havethis information available in setting their tax rates according to law andsection 22 of article X of the Constitution of Missouri. For purposes ofimplementing the provisions of this section and section 22 of article X ofthe Missouri Constitution, the term "property" means all taxable property,including state-assessed property.
(2) Each political subdivision required to revise rates of levypursuant to this section or section 22 of article X of the Constitution ofMissouri shall calculate each tax rate it is authorized to levy and, inestablishing each tax rate, shall consider each provision for tax raterevision provided in this section and section 22 of article X of theConstitution of Missouri, separately and without regard to annual tax ratereductions provided in section 67.505, RSMo, and section 164.013, RSMo.Each political subdivision shall set each tax rate it is authorized to levyusing the calculation that produces the lowest tax rate ceiling. It isfurther the intent of the general assembly, pursuant to the authority ofsection 10(c) of article X of the Constitution of Missouri, that theprovisions of such section be applicable to tax rate revisions mandatedpursuant to section 22 of article X of the Constitution of Missouri as toreestablishing tax rates as revised in subsequent years, enforcementprovisions, and other provisions not in conflict with section 22 of articleX of the Constitution of Missouri. Annual tax rate reductions provided insection 67.505, RSMo, and section 164.013, RSMo, shall be applied to thetax rate as established pursuant to this section and section 22 of articleX of the Constitution of Missouri, unless otherwise provided by law.
5. (1) In all political subdivisions, the tax rate ceilingestablished pursuant to this section shall not be increased unless approvedby a vote of the people. Approval of the higher tax rate shall be by atleast a majority of votes cast. When a proposed higher tax rate requiresapproval by more than a simple majority pursuant to any provision of law orthe constitution, the tax rate increase must receive approval by at leastthe majority required.
(2) When voters approve an increase in the tax rate, the amount ofthe increase shall be added to the tax rate ceiling as calculated pursuantto this section to the extent the total rate does not exceed any maximumrate prescribed by law. If a ballot question presents a stated tax ratefor approval rather than describing the amount of increase in the question,the stated tax rate approved shall be adjusted as provided in this sectionand, so adjusted, shall be the current tax rate ceiling. The increased taxrate ceiling as approved shall be adjusted such that when applied to thecurrent total assessed valuation of the political subdivision, excludingnew construction and improvements since the date of the election approvingsuch increase, the revenue derived from the adjusted tax rate ceiling isequal to the sum of: the amount of revenue which would have been derivedby applying the voter-approved increased tax rate ceiling to total assessedvaluation of the political subdivision, as most recently certified by thecity or county clerk on or before the date of the election in which suchincrease is approved, increased by the percentage increase in the consumerprice index, as provided by law. Such adjusted tax rate ceiling may beapplied to the total assessed valuation of the political subdivision at thesetting of the next tax rate. If a ballot question presents a phased-intax rate increase, upon voter approval, each tax rate increase shall beadjusted in the manner prescribed in this section to yield the sum of: theamount of revenue that would be derived by applying such voter-approvedincreased rate to the total assessed valuation, as most recently certifiedby the city or county clerk on or before the date of the election in whichsuch increase was approved, increased by the percentage increase in theconsumer price index, as provided by law, from the date of the election tothe time of such increase and, so adjusted, shall be the current tax rateceiling.
(3) The governing body of any political subdivision may levy a taxrate lower than its tax rate ceiling and may, in a nonreassessment year,increase that lowered tax rate to a level not exceeding the tax rateceiling without voter approval in the manner provided under subdivision (4)of this subsection. Nothing in this section shall be construed asprohibiting a political subdivision from voluntarily levying a tax ratelower than that which is required under the provisions of this section orfrom seeking voter approval of a reduction to such political subdivision'stax rate ceiling.
(4) In a year of general reassessment, a governing body whose taxrate is lower than its tax rate ceiling shall revise its tax rate pursuantto the provisions of subsection 4 of this section as if its tax rate was atthe tax rate ceiling. In a year following general reassessment, if suchgoverning body intends to increase its tax rate, the governing body shallconduct a public hearing, and in a public meeting it shall adopt anordinance, resolution, or policy statement justifying its action prior tosetting and certifying its tax rate. The provisions of this subdivisionshall not apply to any political subdivision which levies a tax rate lowerthan its tax rate ceiling solely due to a reduction required by lawresulting from sales tax collections. The provisions of this subdivisionshall not apply to any political subdivision which has received voterapproval for an increase to its tax rate ceiling subsequent to setting itsmost recent tax rate.
6. (1) For the purposes of calculating state aid for public schoolspursuant to section 163.031, RSMo, each taxing authority which is a schooldistrict shall determine its proposed tax rate as a blended rate of theclasses or subclasses of property. Such blended rate shall be calculatedby first determining the total tax revenue of the property within thejurisdiction of the taxing authority, which amount shall be equal to thesum of the products of multiplying the assessed valuation of each class andsubclass of property by the corresponding tax rate for such class orsubclass, then dividing the total tax revenue by the total assessedvaluation of the same jurisdiction, and then multiplying the resultingquotient by a factor of one hundred. Where the taxing authority is aschool district, such blended rate shall also be used by such schooldistrict for calculating revenue from state-assessed railroad and utilityproperty as defined in chapter 151, RSMo, and for apportioning the tax rateby purpose.
(2) Each taxing authority proposing to levy a tax rate in any yearshall notify the clerk of the county commission in the county or countieswhere the tax rate applies of its tax rate ceiling and its proposed taxrate. Each taxing authority shall express its proposed tax rate in afraction equal to the nearest one-tenth of a cent, unless its proposed taxrate is in excess of one dollar, then one/one-hundredth of a cent. If ataxing authority shall round to one/one-hundredth of a cent, it shall roundup a fraction greater than or equal to five/one-thousandth of one cent tothe next higher one/one-hundredth of a cent; if a taxing authority shallround to one-tenth of a cent, it shall round up a fraction greater than orequal to five/one-hundredths of a cent to the next higher one-tenth of acent. Any taxing authority levying a property tax rate shall provide data,in such form as shall be prescribed by the state auditor by rule,substantiating such tax rate complies with Missouri law. All forms for thecalculation of rates pursuant to this section shall be promulgated as arule and shall not be incorporated by reference. The state auditor shallpromulgate rules for any and all forms for the calculation of ratespursuant to this section which do not currently exist in rule form or thathave been incorporated by reference. In addition, each taxing authorityproposing to levy a tax rate for debt service shall provide data, in suchform as shall be prescribed by the state auditor by rule, substantiatingthe tax rate for debt service complies with Missouri law. A tax rateproposed for annual debt service requirements will be prima facie valid if,after making the payment for which the tax was levied, bonds remainoutstanding and the debt fund reserves do not exceed the following year'spayments. The county clerk shall keep on file and available for publicinspection all such information for a period of three years. The clerkshall, within three days of receipt, forward a copy of the notice of ataxing authority's tax rate ceiling and proposed tax rate and anysubstantiating data to the state auditor. The state auditor shall, withinfifteen days of the date of receipt, examine such information and return tothe county clerk his or her findings as to compliance of the tax rateceiling with this section and as to compliance of any proposed tax rate fordebt service with Missouri law. If the state auditor believes that ataxing authority's proposed tax rate does not comply with Missouri law,then the state auditor's findings shall include a recalculated tax rate,and the state auditor may request a taxing authority to submitdocumentation supporting such taxing authority's proposed tax rate. Thecounty clerk shall immediately forward a copy of the auditor's findings tothe taxing authority and shall file a copy of the findings with theinformation received from the taxing authority. The taxing authority shallhave fifteen days from the date of receipt from the county clerk of thestate auditor's findings and any request for supporting documentation toaccept or reject in writing the rate change certified by the state auditorand to submit all requested information to the state auditor. A copy ofthe taxing authority's acceptance or rejection and any informationsubmitted to the state auditor shall also be mailed to the county clerk.If a taxing authority rejects a rate change certified by the state auditorand the state auditor does not receive supporting information whichjustifies the taxing authority's original or any subsequent proposed taxrate, then the state auditor shall refer the perceived violations of suchtaxing authority to the attorney general's office and the attorney generalis authorized to obtain injunctive relief to prevent the taxing authorityfrom levying a violative tax rate.
7. No tax rate shall be extended on the tax rolls by the county clerkunless the political subdivision has complied with the foregoing provisionsof this section.
8. Whenever a taxpayer has cause to believe that a taxing authorityhas not complied with the provisions of this section, the taxpayer may makea formal complaint with the prosecuting attorney of the county. Where theprosecuting attorney fails to bring an action within ten days of the filingof the complaint, the taxpayer may bring a civil action pursuant to thissection and institute an action as representative of a class of alltaxpayers within a taxing authority if the class is so numerous thatjoinder of all members is impracticable, if there are questions of law orfact common to the class, if the claims or defenses of the representativeparties are typical of the claims or defenses of the class, and if therepresentative parties will fairly and adequately protect the interests ofthe class. In any class action maintained pursuant to this section, thecourt may direct to the members of the class a notice to be published atleast once each week for four consecutive weeks in a newspaper of generalcirculation published in the county where the civil action is commenced andin other counties within the jurisdiction of a taxing authority. Thenotice shall advise each member that the court will exclude him or her fromthe class if he or she so requests by a specified date, that the judgment,whether favorable or not, will include all members who do not requestexclusion, and that any member who does not request exclusion may, if he orshe desires, enter an appearance. In any class action brought pursuant tothis section, the court, in addition to the relief requested, shall assessagainst the taxing authority found to be in violation of this section thereasonable costs of bringing the action, including reasonable attorney'sfees, provided no attorney's fees shall be awarded any attorney orassociation of attorneys who receive public funds from any source for theirservices. Any action brought pursuant to this section shall be set forhearing as soon as practicable after the cause is at issue.
9. If in any action, including a class action, the court issues anorder requiring a taxing authority to revise the tax rates as provided inthis section or enjoins a taxing authority from the collection of a taxbecause of its failure to revise the rate of levy as provided in thissection, any taxpayer paying his or her taxes when an improper rate isapplied has erroneously paid his or her taxes in part, whether or not thetaxes are paid under protest as provided in section 139.031, RSMo, orotherwise contested. The part of the taxes paid erroneously is thedifference in the amount produced by the original levy and the amountproduced by the revised levy. The township or county collector of taxes orthe collector of taxes in any city shall refund the amount of the taxerroneously paid. The taxing authority refusing to revise the rate of levyas provided in this section shall make available to the collector all fundsnecessary to make refunds pursuant to this subsection. No taxpayer shallreceive any interest on any money erroneously paid by him or her pursuantto this subsection. Effective in the 1994 tax year, nothing in thissection shall be construed to require a taxing authority to refund any taxerroneously paid prior to or during the third tax year preceding thecurrent tax year.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2004, shall beinvalid and void.
Levee districts, readjustment of assessment of benefits for maintenance tax purposes, RSMo 245.197
Levy not imposed in year, rate of tax, RSMo 278.250
(2008) Section allowing a political subdivision to revise a levy to allow for inflationary assessment growth within that political subdivision, as long as the revision does not exceed the lesser of the consumer price index or five percent, does not violate section 22(a) of Article X of the Missouri Constitution. Franklin County ex rel. Parks v. Franklin County Commission, 269 S.W.3d 26 (Mo.banc).
Definitions--revision of prior levy, when, procedure--calculation ofstate aid for public schools, taxing authority's duties.
137.073. 1. As used in this section, the following terms mean:
(1) "General reassessment", changes in value, entered in theassessor's books, of a substantial portion of the parcels of real propertywithin a county resulting wholly or partly from reappraisal of value orother actions of the assessor or county equalization body or ordered by thestate tax commission or any court;
(2) "Tax rate", "rate", or "rate of levy", singular or plural,includes the tax rate for each purpose of taxation of property a taxingauthority is authorized to levy without a vote and any tax rate authorizedby election, including bond interest and sinking fund;
(3) "Tax rate ceiling", a tax rate as revised by the taxing authorityto comply with the provisions of this section or when a court hasdetermined the tax rate; except that, other provisions of law to thecontrary notwithstanding, a school district may levy the operating levy forschool purposes required for the current year pursuant to subsection 2 ofsection 163.021, RSMo, less all adjustments required pursuant to article X,section 22 of the Missouri Constitution, if such tax rate does not exceedthe highest tax rate in effect subsequent to the 1980 tax year. This isthe maximum tax rate that may be levied, unless a higher tax rate ceilingis approved by voters of the political subdivision as provided in thissection;
(4) "Tax revenue", when referring to the previous year, means theactual receipts from ad valorem levies on all classes of property,including state-assessed property, in the immediately preceding fiscal yearof the political subdivision, plus an allowance for taxes billed but notcollected in the fiscal year and plus an additional allowance for therevenue which would have been collected from property which was annexed bysuch political subdivision but which was not previously used in determiningtax revenue pursuant to this section. The term "tax revenue" shall notinclude any receipts from ad valorem levies on any property of a railroadcorporation or a public utility, as these terms are defined in section386.020, RSMo, which were assessed by the assessor of a county or city inthe previous year but are assessed by the state tax commission in thecurrent year. All school districts and those counties levying sales taxespursuant to chapter 67, RSMo, shall include in the calculation of taxrevenue an amount equivalent to that by which they reduced property taxlevies as a result of sales tax pursuant to section 67.505, RSMo, andsection 164.013, RSMo, or as excess home dock city or county fees asprovided in subsection 4 of section 313.820, RSMo, in the immediatelypreceding fiscal year but not including any amount calculated to adjust forprior years. For purposes of political subdivisions which were authorizedto levy a tax in the prior year but which did not levy such tax or levied areduced rate, the term "tax revenue", as used in relation to the revisionof tax levies mandated by law, shall mean the revenues equal to the amountthat would have been available if the voluntary rate reduction had not beenmade.
2. Whenever changes in assessed valuation are entered in theassessor's books for any personal property, in the aggregate, or for anysubclass of real property as such subclasses are established in section4(b) of article X of the Missouri Constitution and defined in section137.016, the county clerk in all counties and the assessor of St. LouisCity shall notify each political subdivision wholly or partially within thecounty or St. Louis City of the change in valuation of each subclass ofreal property, individually, and personal property, in the aggregate,exclusive of new construction and improvements. All political subdivisionsshall immediately revise the applicable rates of levy for each purpose foreach subclass of real property, individually, and personal property, in theaggregate, for which taxes are levied to the extent necessary to producefrom all taxable property, exclusive of new construction and improvements,substantially the same amount of tax revenue as was produced in theprevious year for each subclass of real property, individually, andpersonal property, in the aggregate, except that the rate may not exceedthe most recent voter-approved rate. Such tax revenue shall not includeany receipts from ad valorem levies on any real property which was assessedby the assessor of a county or city in such previous year but is assessedby the assessor of a county or city in the current year in a differentsubclass of real property. Where the taxing authority is a school districtfor the purposes of revising the applicable rates of levy for each subclassof real property, the tax revenues from state-assessed railroad and utilityproperty shall be apportioned and attributed to each subclass of realproperty based on the percentage of the total assessed valuation of thecounty that each subclass of real property represents in the currenttaxable year. As provided in section 22 of article X of the constitution,a political subdivision may also revise each levy to allow for inflationaryassessment growth occurring within the political subdivision. Theinflationary growth factor for any such subclass of real property orpersonal property shall be limited to the actual assessment growth in suchsubclass or class, exclusive of new construction and improvements, andexclusive of the assessed value on any real property which was assessed bythe assessor of a county or city in the current year in a differentsubclass of real property, but not to exceed the consumer price index orfive percent, whichever is lower. Should the tax revenue of a politicalsubdivision from the various tax rates determined in this subsection bedifferent than the tax revenue that would have been determined from asingle tax rate as calculated pursuant to the method of calculation in thissubsection prior to January 1, 2003, then the political subdivision shallrevise the tax rates of those subclasses of real property, individually,and/or personal property, in the aggregate, in which there is a tax ratereduction, pursuant to the provisions of this subsection. Such revisionshall yield an amount equal to such difference and shall be apportionedamong such subclasses of real property, individually, and/or personalproperty, in the aggregate, based on the relative assessed valuation of theclass or subclasses of property experiencing a tax rate reduction. Suchrevision in the tax rates of each class or subclass shall be made bycomputing the percentage of current year adjusted assessed valuation ofeach class or subclass with a tax rate reduction to the total current yearadjusted assessed valuation of the class or subclasses with a tax ratereduction, multiplying the resulting percentages by the revenue differencebetween the single rate calculation and the calculations pursuant to thissubsection and dividing by the respective adjusted current year assessedvaluation of each class or subclass to determine the adjustment to the rateto be levied upon each class or subclass of property. The adjustmentcomputed herein shall be multiplied by one hundred, rounded to fourdecimals in the manner provided in this subsection, and added to theinitial rate computed for each class or subclass of property.Notwithstanding any provision of this subsection to the contrary, norevision to the rate of levy for personal property shall cause such levy toincrease over the levy for personal property from the prior year.
3. (1) Where the taxing authority is a school district, it shall berequired to revise the rates of levy to the extent necessary to producefrom all taxable property, including state-assessed railroad and utilityproperty, which shall be separately estimated in addition to other datarequired in complying with section 164.011, RSMo, substantially the amountof tax revenue permitted in this section. In the year following tax ratereduction, the tax rate ceiling may be adjusted to offset such district'sreduction in the apportionment of state school moneys due to its reducedtax rate. However, in the event any school district, in calculating a taxrate ceiling pursuant to this section, requiring the estimating of effectsof state-assessed railroad and utility valuation or loss of state aid,discovers that the estimates used result in receipt of excess revenues,which would have required a lower rate if the actual information had beenknown, the school district shall reduce the tax rate ceiling in thefollowing year to compensate for the excess receipts, and the recalculatedrate shall become the tax rate ceiling for purposes of this section.
(2) For any political subdivision which experiences a reduction inthe amount of assessed valuation relating to a prior year, due to decisionsof the state tax commission or a court pursuant to sections 138.430 to138.433, RSMo, or due to clerical errors or corrections in the calculationor recordation of any assessed valuation:
(a) Such political subdivision may revise the tax rate ceiling foreach purpose it levies taxes to compensate for the reduction in assessedvalue occurring after the political subdivision calculated the tax rateceiling for the particular subclass of real property or for personalproperty, in the aggregate, in a prior year. Such revision by thepolitical subdivision shall be made at the time of the next calculation ofthe tax rate for the particular subclass of real property or for personalproperty, in the aggregate, after the reduction in assessed valuation hasbeen determined and shall be calculated in a manner that results in therevised tax rate ceiling being the same as it would have been had thecorrected or finalized assessment been available at the time of the priorcalculation;
(b) In addition, for up to three years following the determination ofthe reduction in assessed valuation as a result of circumstances defined inthis subdivision, such political subdivision may levy a tax rate for eachpurpose it levies taxes above the revised tax rate ceiling provided inparagraph (a) of this subdivision to recoup any revenues it was entitled toreceive had the corrected or finalized assessment been available at thetime of the prior calculation.
4. (1) In order to implement the provisions of this section andsection 22 of article X of the Constitution of Missouri, the term"improvements" shall apply to both real and personal property. In order todetermine the value of new construction and improvements, each countyassessor shall maintain a record of real property valuations in such amanner as to identify each year the increase in valuation for eachpolitical subdivision in the county as a result of new construction andimprovements. The value of new construction and improvements shall includethe additional assessed value of all improvements or additions to realproperty which were begun after and were not part of the prior year'sassessment, except that the additional assessed value of all improvementsor additions to real property which had been totally or partially exemptfrom ad valorem taxes pursuant to sections 99.800 to 99.865, RSMo, sections135.200 to 135.255, RSMo, and section 353.110, RSMo, shall be included inthe value of new construction and improvements when the property becomestotally or partially subject to assessment and payment of all ad valoremtaxes. The aggregate increase in valuation of personal property for thecurrent year over that of the previous year is the equivalent of the newconstruction and improvements factor for personal property.Notwithstanding any opt-out implemented pursuant to subsection 15 ofsection 137.115, the assessor shall certify the amount of new constructionand improvements and the amount of assessed value on any real propertywhich was assessed by the assessor of a county or city in such previousyear but is assessed by the assessor of a county or city in the currentyear in a different subclass of real property separately for each of thethree subclasses of real property for each political subdivision to thecounty clerk in order that political subdivisions shall have thisinformation for the purpose of calculating tax rates pursuant to thissection and section 22, article X, Constitution of Missouri. In addition,the state tax commission shall certify each year to each county clerk theincrease in the general price level as measured by the Consumer Price Indexfor All Urban Consumers for the United States, or its successorpublications, as defined and officially reported by the United StatesDepartment of Labor, or its successor agency. The state tax commissionshall certify the increase in such index on the latest twelve-month basisavailable on February first of each year over the immediately precedingprior twelve-month period in order that political subdivisions shall havethis information available in setting their tax rates according to law andsection 22 of article X of the Constitution of Missouri. For purposes ofimplementing the provisions of this section and section 22 of article X ofthe Missouri Constitution, the term "property" means all taxable property,including state-assessed property.
(2) Each political subdivision required to revise rates of levypursuant to this section or section 22 of article X of the Constitution ofMissouri shall calculate each tax rate it is authorized to levy and, inestablishing each tax rate, shall consider each provision for tax raterevision provided in this section and section 22 of article X of theConstitution of Missouri, separately and without regard to annual tax ratereductions provided in section 67.505, RSMo, and section 164.013, RSMo.Each political subdivision shall set each tax rate it is authorized to levyusing the calculation that produces the lowest tax rate ceiling. It isfurther the intent of the general assembly, pursuant to the authority ofsection 10(c) of article X of the Constitution of Missouri, that theprovisions of such section be applicable to tax rate revisions mandatedpursuant to section 22 of article X of the Constitution of Missouri as toreestablishing tax rates as revised in subsequent years, enforcementprovisions, and other provisions not in conflict with section 22 of articleX of the Constitution of Missouri. Annual tax rate reductions provided insection 67.505, RSMo, and section 164.013, RSMo, shall be applied to thetax rate as established pursuant to this section and section 22 of articleX of the Constitution of Missouri, unless otherwise provided by law.
5. (1) In all political subdivisions, the tax rate ceilingestablished pursuant to this section shall not be increased unless approvedby a vote of the people. Approval of the higher tax rate shall be by atleast a majority of votes cast. When a proposed higher tax rate requiresapproval by more than a simple majority pursuant to any provision of law orthe constitution, the tax rate increase must receive approval by at leastthe majority required.
(2) When voters approve an increase in the tax rate, the amount ofthe increase shall be added to the tax rate ceiling as calculated pursuantto this section to the extent the total rate does not exceed any maximumrate prescribed by law. If a ballot question presents a stated tax ratefor approval rather than describing the amount of increase in the question,the stated tax rate approved shall be adjusted as provided in this sectionand, so adjusted, shall be the current tax rate ceiling. The increased taxrate ceiling as approved shall be adjusted such that when applied to thecurrent total assessed valuation of the political subdivision, excludingnew construction and improvements since the date of the election approvingsuch increase, the revenue derived from the adjusted tax rate ceiling isequal to the sum of: the amount of revenue which would have been derivedby applying the voter-approved increased tax rate ceiling to total assessedvaluation of the political subdivision, as most recently certified by thecity or county clerk on or before the date of the election in which suchincrease is approved, increased by the percentage increase in the consumerprice index, as provided by law. Such adjusted tax rate ceiling may beapplied to the total assessed valuation of the political subdivision at thesetting of the next tax rate. If a ballot question presents a phased-intax rate increase, upon voter approval, each tax rate increase shall beadjusted in the manner prescribed in this section to yield the sum of: theamount of revenue that would be derived by applying such voter-approvedincreased rate to the total assessed valuation, as most recently certifiedby the city or county clerk on or before the date of the election in whichsuch increase was approved, increased by the percentage increase in theconsumer price index, as provided by law, from the date of the election tothe time of such increase and, so adjusted, shall be the current tax rateceiling.
(3) The governing body of any political subdivision may levy a taxrate lower than its tax rate ceiling and may, in a nonreassessment year,increase that lowered tax rate to a level not exceeding the tax rateceiling without voter approval in the manner provided under subdivision (4)of this subsection. Nothing in this section shall be construed asprohibiting a political subdivision from voluntarily levying a tax ratelower than that which is required under the provisions of this section orfrom seeking voter approval of a reduction to such political subdivision'stax rate ceiling.
(4) In a year of general reassessment, a governing body whose taxrate is lower than its tax rate ceiling shall revise its tax rate pursuantto the provisions of subsection 4 of this section as if its tax rate was atthe tax rate ceiling. In a year following general reassessment, if suchgoverning body intends to increase its tax rate, the governing body shallconduct a public hearing, and in a public meeting it shall adopt anordinance, resolution, or policy statement justifying its action prior tosetting and certifying its tax rate. The provisions of this subdivisionshall not apply to any political subdivision which levies a tax rate lowerthan its tax rate ceiling solely due to a reduction required by lawresulting from sales tax collections. The provisions of this subdivisionshall not apply to any political subdivision which has received voterapproval for an increase to its tax rate ceiling subsequent to setting itsmost recent tax rate.
6. (1) For the purposes of calculating state aid for public schoolspursuant to section 163.031, RSMo, each taxing authority which is a schooldistrict shall determine its proposed tax rate as a blended rate of theclasses or subclasses of property. Such blended rate shall be calculatedby first determining the total tax revenue of the property within thejurisdiction of the taxing authority, which amount shall be equal to thesum of the products of multiplying the assessed valuation of each class andsubclass of property by the corresponding tax rate for such class orsubclass, then dividing the total tax revenue by the total assessedvaluation of the same jurisdiction, and then multiplying the resultingquotient by a factor of one hundred. Where the taxing authority is aschool district, such blended rate shall also be used by such schooldistrict for calculating revenue from state-assessed railroad and utilityproperty as defined in chapter 151, RSMo, and for apportioning the tax rateby purpose.
(2) Each taxing authority proposing to levy a tax rate in any yearshall notify the clerk of the county commission in the county or countieswhere the tax rate applies of its tax rate ceiling and its proposed taxrate. Each taxing authority shall express its proposed tax rate in afraction equal to the nearest one-tenth of a cent, unless its proposed taxrate is in excess of one dollar, then one/one-hundredth of a cent. If ataxing authority shall round to one/one-hundredth of a cent, it shall roundup a fraction greater than or equal to five/one-thousandth of one cent tothe next higher one/one-hundredth of a cent; if a taxing authority shallround to one-tenth of a cent, it shall round up a fraction greater than orequal to five/one-hundredths of a cent to the next higher one-tenth of acent. Any taxing authority levying a property tax rate shall provide data,in such form as shall be prescribed by the state auditor by rule,substantiating such tax rate complies with Missouri law. All forms for thecalculation of rates pursuant to this section shall be promulgated as arule and shall not be incorporated by reference. The state auditor shallpromulgate rules for any and all forms for the calculation of ratespursuant to this section which do not currently exist in rule form or thathave been incorporated by reference. In addition, each taxing authorityproposing to levy a tax rate for debt service shall provide data, in suchform as shall be prescribed by the state auditor by rule, substantiatingthe tax rate for debt service complies with Missouri law. A tax rateproposed for annual debt service requirements will be prima facie valid if,after making the payment for which the tax was levied, bonds remainoutstanding and the debt fund reserves do not exceed the following year'spayments. The county clerk shall keep on file and available for publicinspection all such information for a period of three years. The clerkshall, within three days of receipt, forward a copy of the notice of ataxing authority's tax rate ceiling and proposed tax rate and anysubstantiating data to the state auditor. The state auditor shall, withinfifteen days of the date of receipt, examine such information and return tothe county clerk his or her findings as to compliance of the tax rateceiling with this section and as to compliance of any proposed tax rate fordebt service with Missouri law. If the state auditor believes that ataxing authority's proposed tax rate does not comply with Missouri law,then the state auditor's findings shall include a recalculated tax rate,and the state auditor may request a taxing authority to submitdocumentation supporting such taxing authority's proposed tax rate. Thecounty clerk shall immediately forward a copy of the auditor's findings tothe taxing authority and shall file a copy of the findings with theinformation received from the taxing authority. The taxing authority shallhave fifteen days from the date of receipt from the county clerk of thestate auditor's findings and any request for supporting documentation toaccept or reject in writing the rate change certified by the state auditorand to submit all requested information to the state auditor. A copy ofthe taxing authority's acceptance or rejection and any informationsubmitted to the state auditor shall also be mailed to the county clerk.If a taxing authority rejects a rate change certified by the state auditorand the state auditor does not receive supporting information whichjustifies the taxing authority's original or any subsequent proposed taxrate, then the state auditor shall refer the perceived violations of suchtaxing authority to the attorney general's office and the attorney generalis authorized to obtain injunctive relief to prevent the taxing authorityfrom levying a violative tax rate.
7. No tax rate shall be extended on the tax rolls by the county clerkunless the political subdivision has complied with the foregoing provisionsof this section.
8. Whenever a taxpayer has cause to believe that a taxing authorityhas not complied with the provisions of this section, the taxpayer may makea formal complaint with the prosecuting attorney of the county. Where theprosecuting attorney fails to bring an action within ten days of the filingof the complaint, the taxpayer may bring a civil action pursuant to thissection and institute an action as representative of a class of alltaxpayers within a taxing authority if the class is so numerous thatjoinder of all members is impracticable, if there are questions of law orfact common to the class, if the claims or defenses of the representativeparties are typical of the claims or defenses of the class, and if therepresentative parties will fairly and adequately protect the interests ofthe class. In any class action maintained pursuant to this section, thecourt may direct to the members of the class a notice to be published atleast once each week for four consecutive weeks in a newspaper of generalcirculation published in the county where the civil action is commenced andin other counties within the jurisdiction of a taxing authority. Thenotice shall advise each member that the court will exclude him or her fromthe class if he or she so requests by a specified date, that the judgment,whether favorable or not, will include all members who do not requestexclusion, and that any member who does not request exclusion may, if he orshe desires, enter an appearance. In any class action brought pursuant tothis section, the court, in addition to the relief requested, shall assessagainst the taxing authority found to be in violation of this section thereasonable costs of bringing the action, including reasonable attorney'sfees, provided no attorney's fees shall be awarded any attorney orassociation of attorneys who receive public funds from any source for theirservices. Any action brought pursuant to this section shall be set forhearing as soon as practicable after the cause is at issue.
9. If in any action, including a class action, the court issues anorder requiring a taxing authority to revise the tax rates as provided inthis section or enjoins a taxing authority from the collection of a taxbecause of its failure to revise the rate of levy as provided in thissection, any taxpayer paying his or her taxes when an improper rate isapplied has erroneously paid his or her taxes in part, whether or not thetaxes are paid under protest as provided in section 139.031, RSMo, orotherwise contested. The part of the taxes paid erroneously is thedifference in the amount produced by the original levy and the amountproduced by the revised levy. The township or county collector of taxes orthe collector of taxes in any city shall refund the amount of the taxerroneously paid. The taxing authority refusing to revise the rate of levyas provided in this section shall make available to the collector all fundsnecessary to make refunds pursuant to this subsection. No taxpayer shallreceive any interest on any money erroneously paid by him or her pursuantto this subsection. Effective in the 1994 tax year, nothing in thissection shall be construed to require a taxing authority to refund any taxerroneously paid prior to or during the third tax year preceding thecurrent tax year.
10. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date, or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2004, shall beinvalid and void.
Levee districts, readjustment of assessment of benefits for maintenance tax purposes, RSMo 245.197
Levy not imposed in year, rate of tax, RSMo 278.250
(2008) Section allowing a political subdivision to revise a levy to allow for inflationary assessment growth within that political subdivision, as long as the revision does not exceed the lesser of the consumer price index or five percent, does not violate section 22(a) of Article X of the Missouri Constitution. Franklin County ex rel. Parks v. Franklin County Commission, 269 S.W.3d 26 (Mo.banc).
