INDEPENDENCE, Mo. (KCTV) — An order from the Missouri State Tax Commission (STC) this week directing Jackson County to correct its 2023 tax rolls to reflect increases of no more than 15 percent has been hailed as a victory for taxpayers. But it could also place a serious burden on localities that rely on property tax money.
The county collects property taxes but receives only a fraction of the revenue. The rest goes to cities, school districts, libraries and fire districts.
The Independence School District is entering the new school year with great concern about what this will mean for them. Superintendent Dr. Dale Herl said about 40 percent of the school district’s funding comes from property taxes.
“We are ready to start school here in less than two weeks. We have hired staff and set a budget, but right now we don’t know exactly what our revenue situation looks like. And it could be millions and millions of dollars in the red,” Herl said. “This will potentially have a huge impact on many families, many children and many workers in Jackson County.”
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The county will now likely have to recalculate its tax rate for the next cycle and increase it accordingly. That must be done by October 1, with public hearings in September. First, they need a total amount for the revised assessments. One of Herl’s biggest concerns is the prospect of having to pay back the money it has already received and spent.
The order to withdraw the assessments stems from violations of law that the STC cites regarding required physical inspections and notifications for increases greater than 15 percent. The order requires the county to adjust the lists retroactively for 2023 and maintain those adjusted assessments for the 2024 assessment lists.
In a statement sent to the media on Thursday, Jackson County Executive Frank White described the potential financial impact as “devastating.”
READ MORE: Jackson County lawmakers say it’s time to stop fighting and start solving the property tax problem
He said schools and libraries in Jackson County could lose more than $86 million — cities and fire districts could lose nearly $20 million. In total, that’s more than $115 million. His office told KCTV5 Thursday morning that the estimates were calculated by the Jackson County Collections Department. KCTV5 asked how the figure was calculated and is awaiting a response. The estimates are the county’s second news release in as many days. Daily requests for in-person interviews have been ignored or declined.
District officials who have long been critical of the assessments are now pushing for school districts to turn to them.
“It’s not the job of the cities and schools to figure out how to fix the problem,” said Jackson County Rep. Sean Smith. “That’s the job of this group and the administration to figure out how to fix the problem, and I think we’re all equally committed to fixing the problem in a constructive way.”
White has sworn to fight against the Order.
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