I
n Missouri, a unique challenge faces county assessors: determining property values without access to crucial sales data. Unlike most states, Missouri doesn't require buyers to disclose the price they paid for their property, leaving assessors to rely on incomplete information.

    This lack of transparency can lead to inaccurate assessments, particularly for high-end homes and large commercial properties. Without reliable data, taxing jurisdictions like schools, libraries, and cities may end up taxing some property owners more than others with similar values. In extreme cases, this could even jeopardize local funding or plunge school districts into financial crisis.

    To address this issue, Rep. Emily Weber has proposed a bill that would require buyers to disclose sales prices to the county. If not, they'd face a 5% fine of the sales price. This measure aims to build a database that assessors can use to refine their mass-appraisal algorithms and verify assessments.

    While residential property data is relatively reliable, commercial properties pose a significant problem. County assessors like Tracy Baldwin from Clay County struggle to find accurate sales prices for these properties, often relying on incomplete information or estimates. This can result in undervalued properties, shifting the tax burden onto homeowners who end up paying more.

    Inaccurate assessments can have far-reaching consequences, affecting property tax bills for everyone in a school district, city, or county. If a property is undervalued, taxing jurisdictions may raise taxes to compensate, leading to increased costs for homeowners.

    Missouri isn't alone in this challenge; New Mexico also lacks sales price disclosure, and a 2004 study found that lower-income families paid disproportionately high property taxes due to inaccurate assessments. Property assessors like Mike Ardis from the International Association of Assessing Officers emphasize the importance of accurate data, stating that jurisdictions without laws mandating full disclosure operate at a significant disadvantage.

    Some Missouri counties have already taken steps to address this issue. Jackson County requires buyers to submit a "certificate of value" disclosing the sales price, while Kansas requires property buyers to submit a questionnaire including the sales price. However, the Missouri Realtors organization opposes Rep. Weber's bill, citing concerns about buyer and seller privacy.

    The proposed legislation faces an uncertain future, having been introduced but not receiving a committee hearing in previous sessions. Despite this, county assessors like Baldwin believe that passing the bill would significantly improve property assessments and benefit taxpayers.