2014 Property Tax Rates - Missouri State Auditor

1 Thomas A. Schweich Missouri State Auditor 2014 Property Tax Rates Report No. 2015-004 January 2015 CITIZENS SUMMARY January 2015 *The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following: Excellent: The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented. Good: The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented. Fair: The audit results indicate this entity needs to improve operations in several areas.

2 The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented. Poor: The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented. All reports are available on our Web site: Thomas A. Schweich Missouri State Auditor Section , RSMo, requires the State Auditor 's office to annually review the local Property tax Rates of all taxing authorities in the State to determine whether taxing authorities levied taxes in accordance with Missouri law and adjusted Property tax Rates to keep Property reassessments from affecting revenue.

3 We reviewed 4,865 Property tax Rates for 2,832 taxing authorities. Three taxing authorities (Madison Special Road District in Monroe County, Elmwood Park Street Light District in St. Louis County, and the Village of Velda Village Hills in St. Louis County) levied tax Rates greater than the tax rate certified, resulting in excess Property taxes levied of $35,091. The Madison Special Road District tax rate was non-compliant due to an error in ballot language. In accordance with Section (2), RSMo, we referred the three non-compliant taxing authorities to the Missouri Attorney General's office. The State Auditor 's office has no authority to determine or review individual tax assessments. All individual tax assessment matters are the responsibility of the county assessor and board of equalization.

4 Appeals to the State on tax assessment matters are handled by the Missouri State Tax Commission. Findings in the review of 2014 Property Tax Rates Background results Additional Comments Because of the limited objective of this review, no overall rating is provided. 12 Summary ..3 Methodology ..3 Recent Summary of Changes in Assessed Valuation for LocalGovernments Levying a Single Tax Rate on All Property ..7II. Summary of Changes in Assessed Valuation for LocalGovernments Levying a Separate Tax Rate for Each Subclassof Property ..8 III. Summary of Changes in Tax Rate Ceilings for LocalGovernments Levying a Single Tax Rate on All Property ..9IV. Summary of Changes in Tax Rate Ceilings for LocalGovernments Levying a Separate Tax Rate for Each Subclassof Property ..10V. 2013 - 2014 Percentage Change in Total Assessed Valuations byCounty, Overall County Valuation Changes.

5 11VI. 2013 - 2014 Percentage Change in Adjusted AssessedValuations by County ..12 VII. Listing of 2014 Tax Rates for Local Governments Levying aSingle Tax Rate on All Listing of 2014 Tax Rates for Local Governments Levying aSeparate Tax Rate for Each Subclass of Property ..111 State Auditor 's ReportResults2014 Property Tax RatesTable of State Auditor2 Honorable Jeremiah W. (Jay) Nixon, GovernorandMembers of the General AssemblyJefferson City, MissouriThe State Auditor 's office is required by Section , RSMo, to annually review local Property taxrates of all taxing authorities in the State . The primary objectives of this review were to governing boards levied taxes in accordance with the Missouri Constitution andstate Property tax Rates were adjusted to ensure Property reassessments were of existing Property are not intended to increase Property tax revenue but to equitablyreallocate the existing tax burden based on the relative value of Property owned by 2014, we received substantiating data and issued a finding on 4,865 Property tax Rates of 2,832 taxingauthorities.

6 Three taxing authorities levied tax Rates that exceeded the tax rate certified, resulting in excessproperty taxes levied of $35,091. The number of taxing authorities levying a non-compliant tax rate percent of all taxing taxes are the main source of revenue for many of Missouri 's special purpose politicalsubdivisions and county boards. The bulk of Property taxes, however, fund public schools. Generalacceptance of these taxes is dependent on fair and equitable assessment practices and publicunderstanding and input regarding the setting of Rates . If the tax burden is increased without voterapproval, confidence in the fairness and assessment practices is often A. SchweichState AuditorThe following auditors participated in the preparation of this report:Deputy State Auditor : Harry J.

7 Otto, CPAD irector of Audits:Regina Pruitt, CPAIn-Charge Auditor :Becky Webb, CPA, CFEA udit Staff:Dana Wansing, MPA32014 Property Tax RatesResultsThe State Auditor received substantiating data and reviewed 4,865 propertytax Rates for 2,832 taxing authorities. Of the Rates reviewed, 496 are debtservice tax Rates , 117 are new Property tax Rates approved by voters, and 40are existing Property tax Rates that were increased by voter approval. Wereviewed the remaining 4,212 tax Rates for revenue neutrality. Three taxingauthorities ( percent of all taxing authorities) levied tax Rates thatexceeded the tax rate certified, resulting in excess Property taxes levied of$35, compliance with Section (2), RSMo, we referred the 3 non-compliant taxing authorities to the Missouri Attorney General's office.

8 Thetable below lists these taxing authorities and information about the impropertax Rates .(1) The Certified Rate column represents the Rates determined to be legally permissible based on the information submitted by the taxingauthority.(2) The excess Property tax revenue is computed by multiplying the excess tax rate (actual rate levied minus the certified rate) by theassessed valuation and dividing by 100.(3) Madison Special Road District levied a non-compliant rate due to an error in ballot language. The April 2014 ballot issue approved arate of cents ($ ) instead of the intended 35 cents ($ ). A subsequent ballot issue approved by voters in November2014 authorized the 35 cents rate; however, in accordance with Section , RSMo, the November ballot is valid for 2015 sinceapproved after the deadline to be effective for State Auditor 's office and county officials assist local governmentofficials in determining the data necessary to complete the tax ratecomputations.

9 Taxing authorities are required to file final proposed taxrate(s) and data supporting the proposed Property tax Rates with the county,using forms prescribed by the State Auditor . The counties submit thesubstantiating data received to the State Auditor for review. The data isreviewed and a finding is returned to both the county and the taxingauthority advising whether the proposed Rates comply with Missouri 2014 tax rate ceilings were determined based on the requirements ofSection , RSMo, and Article X, Section 22, Missouri Constitution(commonly referred to as the Hancock Amendment). Each tax rate ceiling isdetermined annually and is adjusted to ensure revenue neutrality. Thereview of each tax rate ceiling is based on the assessed valuation for theentire political subdivision and is not calculated on an individual Tax RatesResultsMethodologyCountyPolitical SubdivisionLevy Purp oseAssessedValuation(1)CertifiedRateActu alRateLevied(2)ExcessProp erty TaxRevenueMonroeMadison Special Road Dist rictSpecial Road and Bridge9,573, $33,509(3)St.

10 LouisElmwood Park St reet Light Dist rictGeneral RevenueResident ial951, , P ropert y392, LouisVillage of Velda Village HillsGeneral RevenueCommercial157, ot al$35,09142014 Property Tax RatesResultsTo ensure taxing authorities do not receive a windfall from reassessment,the review of Property tax Rates begins with the prior year allowed year tax rate ceilings must be set to yield the same gross revenue asallowed in the prior year. In addition, an adjustment is made for additionalrevenue permitted for assessment growth. That adjustment is the lower of(1) the actual growth rate, (2) the inflation rate, or (3) 5 percent. Factorssuch as new construction and improvements, newly added territory, newlyseparated territory, and changes from locally assessed to State assessedproperty also affect the tax rate ceiling calculation.