‘Devastating’: What rolling back property tax assessments could mean for schools
INDEPENDENCE, Mo. (KCTV) - An order this week from the Missouri State Tax Commission (STC) instructing Jackson County to correct the 2023 assessment rolls to reflect increases of no more than 15 percent was hailed as a victory for taxpayers. It also could create a serious strain for the places that count on property tax dollars to run.
The county collects the property tax but only gets a sliver of the proceeds. The rest goes to cities, school districts, libraries, and fire districts.
The Independence School District is starting the school year with much worry about what it will mean for them. Superintendent Dr. Dale Herl said approximately 40 percent of their funding comes from property taxes.
“We’re about ready to start school here in less than two weeks. We have staff hired to start and a budget set and now we don’t know exactly what our revenue situation looks like. And it could be negative millions and millions of dollars,” Herl said. “It’s going to have a huge impact potentially on a lot of families, a lot of kids, a lot of employees within Jackson County.”
READ MORE: Homeowners are ‘cautiously hopeful’ after State Tax Commission order in 2023 tax assessment
The district will now likely need to recalculate and raise its tax levy rate accordingly for the next cycle. That’s something that needs to be done by October 1, with public hearings in September. First, they will need a total for the revised assessments. One of Herl’s biggest worries is the prospect of having to pay back the money they already received and already spent.
The order to roll back the assessments stems from what the STC calls violations of the law regarding required physical inspections and notifications for increases of more than 15 percent. The order requires the county to adjust the rolls retroactively for 2023 and keep those adjusted valuations in place for the 2024 assessment rolls.
In a statement sent to news media Thursday, Jackson County Executive Frank White called the potential financial impact “devastating.”
READ MORE: Jackson County legislators say it’s time to stop fighting, start fixing property tax problem
He said schools and libraries in Jackson County could lose more than $86 million - with cities and fire districts looking to lose nearly $20 million. That’s more than $115 million total. His office informed KCTV5 the estimates were calculated by the Jackson County Collections Department Thursday morning. KCTV5 asked how the figure was calculated and is awaiting a response. The estimates come in the second news release from the county in as many days. Requests each day for in-person interviews have been ignored or denied.
County legislators long critical of the assessments are urging school districts to now reach out to them.
“That’s not for the cities and schools to figure out how to fix,” said Jackson County legislator Sean Smith. “That’s for this group and the administration to figure out how to fix, and I think we’re all equally committed to fixing it in a constructive way.”
White has vowed to fight the order.
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