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State tax assessments have no impact on refunds for taxpayers who paid under protest
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State tax assessments have no impact on refunds for taxpayers who paid under protest

JACKSON COUNTY, Missouri (KCTV) — After Monday night’s meeting, some Jackson County lawmakers are looking for solutions to the Missouri State Tax Commission’s order while taxpayers continue to ask when changes might come.

Last week, the Missouri State Tax Commission (STC) ordered the county to limit levy increases to 15% in most cases in 2023.

On Monday evening, Jackson County Legislator Sean Smith filed a resolution directing the County Council not to appeal the STC’s decision.

The resolution also directed that lawmakers have a say in all lawsuits over $5,000.

It did not make it to first reading. Parliament’s Speaker Jeanie Lauer rejected it due to concerns about its legality.

“I think the majority of legislators agreed that we should not challenge the outcome of the State Tax Commission and leave it as it is,” said Manny Abarca, assemblyman for Jackson County’s 1st District.

READ MORE: Jackson County attorney: Either way, court order on assessments will be appealed

On Tuesday, lawmaker Smith said there was $119 million in overpaid taxes in Jackson County and that swift action was needed.

“We have six weeks to fix the problem before it gets twice as bad, because that’s when cities and school districts set their levy rates,” said Sean Smith, Jackson County’s 6th District assemblyman.

He said it could become a $250 million problem if there were delays in resolving the issues.

Legislator Smith wants the county to comply with the STC and believes there are two viable solutions to mitigate the problem and provide a benefit for everyone.

“I think we made a mistake and I think we need to loosen up some of the money to help people who are in immediate financial crisis,” Smith said.

He said another option he would like to put forward is to help both taxpayers and tax authorities.

“If we follow the direction of the State Tax Commission, recalculate people’s assessed value and provide that information to the tax authority, they can set their tax rates correctly,” Smith said.

READ MORE: Homeowners fear losing their homes due to the 2023 property tax assessment

Authorities there may be able to make up for lost money, but tax rates could rise somewhat as a result, he said.

“The bottom line is that if we do this over a couple of years and then give people a credit on their tax bill for a couple of years if they’ve overpaid, we’ll even it out somewhat,” said Rep. Smith.

These have not yet been introduced.

While Representatives Smith and Abarca work with their colleagues to find a solution, some taxpayers submitted their questions to KCTV5.

One asked if there was a conditional payment for him and what that meant for him.

Lawmaker Smith said many people might think they did so, adding that a notation on the check saying “paid under reserve” does not make it valid.

“You have to fill out certain forms and it depends on what form you use, whether you have a mortgage and you pay your taxes that way or directly. Then you have to participate in a lawsuit. There was a lawyer here in town who did that for free and she added their names to that lawsuit. All of that had to take place,” said lawmaker Smith.

He said the Jackson County tax collector is currently investigating the exact number of people who paid their taxes under protest.

Representative Smith estimates that the amount set aside will amount to several million.

On Tuesday, the Jackson County Executive’s office issued a statement regarding the protest payments:

“The STC’s order does not affect refunds for payments made under protest. Tax payments properly made under protest will be transferred to a separate account. A tax payment is deemed to have been properly made under protest if the taxpayer files an STC appeal or files a lawsuit. If the taxpayer does not file a lawsuit within 90 days, those funds will be distributed to the appropriate agencies.

At this point, the protested funds held in the segregated account are likely to be property that is still subject to an active STC appeal or is the subject of ongoing litigation. All other funds have been returned to the jurisdictions.

Any taxpayer who has paid their taxes and then experiences a reduction in the value of their property as a result of an appeal will get their money back.”

Mayor Quinton Lucas may not play a major role in this, but as a resident and taxpayer, he said they just want clarity.

“We don’t need more saber rattling, but we need solutions. We need an outcome. And I think we need to understand that this has been a difficult process for a lot of people here,” Lucas said. “How can we do it differently? I was someone who had their taxes raised, I think 67%, and a whole bunch of people had it much worse. We need to make sure that this kind of damage doesn’t happen again. I think there’s a way to fix this problem.”

Lawmaker Smith plans to reintroduce his resolution next Monday.

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